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.
Westinghouse Air Brake Technologies Corp (NYSE:WAB) will merge with the transportation segment of General Electric Company (NYSE:GE) to create Transportation Systems Holdings, a rail equipment, services and software supplier, according to a Monday announcement.
“Both businesses are expected to benefit from the cyclical tailwinds they are experiencing as industry conditions improve,” the press release read. “Complementary businesses and large global installed base will create additional opportunities for cross-selling, aftermarket services growth and new solutions in a rapidly evolving industry.”
Wabtec will close the transaction with 49.9 percent of the combined entity, higher margins, $8 billion in revenues, and about 15-percent bottom-line accretion in one year.
GE will receive $2.9 billion in cash, own 50.1 percent of Wabtec, and grow adjusted earnings before interest, tax, depreciation and amortization (EBITDA) an estimated 20 percent over the next year.
“GE Transportation is positioned for a substantial rebound,” the release read.
The parties expect the $11.1 billion transaction to generate annual run-rate synergies of $250 million with free cash flow supporting rapid debt reduction and maintenance of Wabtec’s regular dividend.
GE shares popped 2.5 percent and Wabtec 2.2 percent in pre-market trading on the news.
Related Links:
JPMorgan Dismisses Buffett-GE Buyout Rumor
JPMorgan Lowers General Electric Price Target, Says EPS Guidance Is 'Not A Credible Number'
Photo courtesy of GE.
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.
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!