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.
Penumbra Inc (NYSE:PEN) shares trended higher Wednesday on the confidence of one new analyst.
The Rating
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William Blair analyst Kaila Krum initiated coverage with an Outperform rating.
The Thesis
Penumbra boasts stable footing in the stroke market, having “challenged the paradigm of treatment,” according to Krum.
Its neurovascular aspiration system for ischemic strokes can tap into a $1.5 billion domestic opportunity only 15-percent penetrated by mechanical thrombectomies, and this particular market may be striking an inflection point, with competition offset by market growth.
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“We believe the mechanical thrombectomy market can grow 20 percent-plus for the next two to three years, with Penumbra’s aspiration technology outpacing that growth,” Krum wrote in a Wednesday note.
At the same time, Penumbra’s portfolio for venous and arterial clots brings a $480 million opportunity expected to expand to $520 million by the end of 2019. Additional innovations could broaden its reach to intracerebral hemorrhage and coronary thrombosis indications.
“Shares of Penumbra trade at a premium to the rest of its med tech peers on a revenue basis (8.0 times our 2018 estimate and 6.8 times our 2019 estimate), although we believe that the premium is warranted given its superior growth profile; vast, underpenetrated market opportunity; and differentiated aspiration technology,” Krum wrote.
Price Action
At time of publication, shares were trading up 1.7 percent at $101.05.
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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.