27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Diebold Nixdorf Inc (NYSE:DBD), a financial self-service, security and services company, has "struggled" over the past year but Credit Suisse stuck with it...until now.
The Analyst
Credit Suisse's Paul Condra downgraded Diebold Nixdorf from Outperform to Neutral with a price target lowered from $19 to $15.
The Thesis
Diebold Nixdorf ended 2017 with revenue of $4.6 billion, which fell short of the $5 billion the company guided to at the start of the year, Condra said in a note. Exiting 2017, the case could have been made that many of the negatives were priced into the stock and multiple tailwinds would offer a favorable set-up. The company's first-quarter earnings, however, makes it clear "more downside could be found."
While Diebold Nixdorf's first-quarter revenue miss of $1.064 billion versus expectations of $1.08 billion was "modest," the 12 cent per share loss versus expectations for 1 cent per share profit was "more substantial." The EPS miss not only casts doubt management can achieve its previously stated 2018 targets, but there's "little room for error" to attain even the low end of the guidance.
The company continues to face secular challenges and the "ongoing turbulence" from a management turnover, Condra said. Restructuring initiatives have yet to be clarified and implemented, which implies it may take longer than expected for any catalysts to play out. The analyst said investors could expect "continued choppiness" in the near term and management needs to communication "measurable proof points" before becoming constructive on the stock.
Price Action
Shares of Diebold Nixdorf were trading lower by 1.4 percent Friday at $11.88.
Benzinga's Top Upgrades, Downgrades For May 4, 2018
Mid-Morning Market Update: Markets Open Higher; Alibaba Tops Q4 Estimates
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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!