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.
For Mid-America Apartment Communities Inc (NYSE:MAA), a multifamily REIT with roughly 100,000 apartment units and a small development platform, the multiple concerns moving forward outweigh the positives, according to Stifel.
The Analyst
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Stifel's John Guinee downgraded Mid-America Apartment Communities from Buy to Hold with an unchanged $100 price target.
The Thesis
The analyst's concerns outweigh the positives:
- Few barriers for rival REITs to compete in Mid-America Apartment Communities' existing or future markets;
- Increasing development and/or replacement costs;
- Management's revised assumptions for its core portfolio operations to the downside are unlikely to reverse in the near term; and
- The company's development platform isn't very active.
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Investors looking for exposure to the REIT sector may want to consider instead multifamily platforms that boast strong development efforts or trading at a more attractive total enterprise value/unit versus Mid-America Apartment Communities' TEV/unit of $164,000.
Mid-America Apartment Communities' reported second-quarter results Wednesday, which unlike many of its peers didn't include an increase to the underlying drivers to funds from operations (FOO) growth, the analyst wrote.
Price Action
Shares of Mid-America Apartment Communities were trading around $101.67 Friday.
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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.