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.
Disappointing 2018 guidance means a rough start to the year for L Brands Inc (NYSE:LB), according to Bank of America Merrill Lynch.
The Analyst
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BofA's Lorraine Hutchinson maintained an Underperform rating on L Brands with a $38 price target.
The Thesis
L Brands’ fiscal 2018 EPS guidance of $2.95-$3.25 per share falls below the consensus of $3.46, indicating that margin recovery will not be achieved in 2018, Hutchinson said in a Wednesday note. (See the analyst’s track record here.)
The retailer reported fourth-quarter results and 2018 guidance after the close Wednesday.
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“February was not the rebound investors had hoped for," the analyst said.
A decline in loungewear sales strength put further pressure on margins for the Victoria’s Secret brand, the analyst said.
“We think the current valuation does not appropriately reflect the earnings risk related to challenges at Victoria's Secret," Hutchinson said.
Price Action
L Brands was down 13.87 percent at $42.49 at the close Thursday.
Related Links:
L Brands: 4 Reasons for Concern
Victoria's Secret Issues Are 'Self-Inflicted,' But L Brands Can Bounce Back
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.