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.
Stifel expressed confidence in manufacturer Timken Co (NYSE:TKR) after a meeting with the company's management.
The Analyst
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Analyst Stanley Elliott upgraded Timken from Hold to Buy and increased the price target from $52 to $60.
The Thesis
Following two years of organic declines, Timken's end markets have rebounded, Elliott said in a Sunday note. Despite being in recovery mode for five quarters, Timken's market recovery has accelerated only within the past 60 days, the analyst said.
Timken raised its full-year guidance twice in that timeframe, with 12-percent organic growth expected for the full year, Elliott said.
The outlook is supportive of mid-single-digit volume growth into 2019, according to Stifel.
"Pricing recently turned positive for the company in 1Q18 and expectations are that relationship remains through the remainder of the year."
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Timken's shares have underperformed the S&P 500 Index by 6 percent over the past year, dragged by cycle, price and cost and margin potential uncertainties , Elliott said. All appear manageable in the near-to-medium term, he said.
Stifel increased its estimates for Timken, citing higher margin assumptions.
The Price Action
Timken shares have added 2.6 percent year-to-date.
The stock was up 0.31 percent at $48.90 at the time of publication Tuesday.
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Photo courtesy of Timken.
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.