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.
A Keefe, Bruyette & Woods analyst zerored in on three reasons to be incrementally positive on the insurance holding company James River Group Holdings Ltd (NASDAQ:JRVR) despite recent underperformance.
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!
Keefe Bruyette & Woods analyst Meyer Shields upgraded James River Group from Market Perform to Outperform and increased the price target from $38 to $42, suggesting 22-percent upside.
The Thesis
The reserve strengthening in the James River Group's excess and surplus lines segment in the fourth quarter was an "anomaly that is unlikely to recur," Shields said in a Wednesday note.
The company's year-end 2017 GAAP loss and loss adjustment expense reserves were overstated by almost $80 million, 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.
KBW expects rate increases on James River's core non-commercial auto and commercial auto book to support top-line growth, and strong accident-year 2018 margins.
Citing the company's "solid" long-term underwriting track record and demonstrated innovation skills, Shields said it could be an attractive M&A candidate if industrywide consolidation persists.
KBW raised its earnings per share estimates for 2018 and 2019 from $2.50 and $2.60, respectively, to $2.65 and $2.75 to account for the higher expected net reserve releases.
The Price Action
James River Group shares were rallying 4.83 percent to $36 at the time of publication Thursday.
Related Links:
UBS Gets Bullish On Insurance Stocks
Should You Limit Your Insurance Claims?
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.