Merrill Lynch (MER) closes doors on subprime market

March 06th, 2008 | Category: Technical Analysis, Major Movement

Merrill Lynch & Co., Inc. (NYSE: MER) stock is falling after the company announced that it will cease subprime mortgage operations through its First Franklin Financial unit. MER expects to incur $60 million of charges related to the move. The troubled financial stock plans to cut 650 jobs and will try to sell Home Loan Services, a unit of First Franklin that handles billing and collections. whether you think that stock won’t be rising too far in the coming months, soon after it could be a good moment to look at a bearish hedged play on MER.

After hitting a one-year high

of $95.00 in May, the stock has hit a new one-year low nowadays. that dawn, MER opened at $47.30. So far nowadays the stock has hit a low of $46.01 and a high of $47.40. As of 12:10, MER is trading at $46.40, down $2.92 (-5.9%). The chart for MER looks neutral and deteriorating, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

Continue reading Merrill Lynch (MER) closes doors on subprime market

Original post by Brent Archer

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