27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Box Inc (NYSE:BOX) is a market leader in SaaS solutions for enterprise content management, file sync and share, according to D.A. Davidson.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
D.A. Davidson analyst Rishi Jaluria initiated coverage of Box Inc shares with a Buy rating and 12-18 month price target of $25.
The Thesis
Jaluria outlined three primary reasons for D.A. Davidson's bullish take on Box in a Wednesday note:
- The company is capable of sustaining high growth rates due to continued cross-selling opportunities and seat expansion.
- The competitive environment becoming more favorable for the company, with competing vendors either exiting the market or de-emphasizing their ECM product offerings.
- Box has shown impressive operating leverage in its model, with a 600-basis-point year-over-year operating margin expansion expected in 2018.
"We expect continued leverage, especially from sales and marketing, and model an additional 700 basis points of margin leverage in fiscal 2019," the analyst said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
D.A. Davidson projects the Redwood City, California-based company to be sustainably free cash flow positive.
The research firm estimates a 2018 non-GAAP loss of 45 cents per share on 27-percent revenue growth, in line with the consensus. For 2019, D.A. Davidson expects a loss of 20 cents per share on 23-percent revenue growth.
Box faces risk, particularly from competitors Dropbox and Microsoft Corporation (NASDAQ:MSFT); the likelihood of the company continuing to bleed on the bottom line; competition from other cloud storage vendors such as Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN)'s AWS; and its dual-class share structure, Jaluria said.
The Price Action
Box Inc. shares were up about 16.5 percent over the past year until Wednesday.
The stock was up 4.74 percent at $22.20 near the end of Thursday's trading session.
Related Links:
Okta Has A 'Competitive Advantage,' Needham Says In Bullish Initiation Of Security Provider
Needham Upgrades Workday Ahead of Q4 Report
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.