Price Forecast:

Bullish Case: Leggett & Platt could rebound as market volatility implies potential positive news, alongside its high dividend yield of 6.5%, attracting value investors. Historical data shows likelihood of recovery with continued demand for products.

Bearish Case: Current weak fundamentals, negative revision trends, and high debt present significant risks to Leggett & Platt, suggesting potential for further declines. Raw historical returns emphasize a bearish sentiment with downside risks ahead.

Potential Outcomes:

• 40% price rebound due to investor confidence in high dividends.
• 35% continued decline amid persistent economic pressures.
• 25% neutral movement as the market stabilizes around current levels.

Trading Oracle: Consider a bearish credit spread, selling the $12.50 put and buying the $10.00 put. This strategy exploits high implied volatility and aligns with the bearish outlook as current trends indicate possible further declines. Focus on short-term profit with high probability of success.

December 03, 2024