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.
Nordstrom, Inc. (NYSE:JWN) announced its special committee ended discussions with the Nordstrom family attempt to take the company private, citing a lack of agreement on price.
The Analyst
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Credit Suisse analyst Michael Binetti maintains a Neutral rating, but lowered his price target from $54 to $50.
The Thesis
Now that it's clear Nordstrom will remain public, Binetti continues to believe the company has long-term advantages against its department store peers as it has followed retail’s natural progression towards e-commerce.
“We continue to believe JWN has long-term advantages vs peers, and emerging EBIT drivers from its growing credit business,” Binetti said.
Nordstrom is a retail leader in omni-channel presence, with a quarter of its sales coming from e-commerce, and 33 percent coming from off-price channels. Nordstrom has limited its exposure to malls in the US, where Binetti continues to see a long term closure risk. The analyst also expects the retailer to deliver better EBIT growth from modest sales growth through 2020.
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“We also see underlying EPS growth in ‘18 from reversing GM pressure and multi-year investment cycle/SG&A headwinds (like Manhattan dead rent) starting to roll off,” said Binetti.
Now that a takeover appears unlikely however, Binetti believes the stock will remain range-bound in the near term until signs of improving fundamentals materialize, leading to a lowered price target.
Price Action
Shares were down about 2.3 percent Wednesday at $48.20.
Related Links:
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Image credit: GoToVan, CC BY 2.0, via Wikimedia Commons
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.