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.
Walmart Inc (NYSE:WMT) delivered a solid second quarter earnings and sales beat Thursday, but was still hit with a downgrade by a still-bullish Raymond James.
The Analyst
Raymond James analyst Budd Bugatch downgraded Walmart from a Strong Buy to Outperform and raised the price target from $100 to $107.
The Thesis
Walmart posted its best quarterly performance since the Great Recession 40-percent e-commerce sales growth, but Bugatch still slapped Walmart with a downgrade. (See the analyst's track record here.)
The analyst said he supports the retailer's long-term strategy of continued investment in growth geographies and opportunities in the new world of retail like Flipkart, but said he cannot ignore that the acquisition of the Indian e-commerce company will weigh on consolidated operating earnings.
Once the deal closes, it will slice 4 to 5 cents per share per month from Walmart's adjusted earnings, Bugatch said. Raymond James' adjusted 2019 estimate for Walmart sits at $4.78, but that figure would be $5 sans the Flipkart acquisition, he said.
“The total drag for [2019 and 2020] operating earnings will depend on when the investment closes and the level of incremental investments needed to continue [to] grow the business going forward."
Price Action
Walmart shares were down 0.56 percent at $98.10 at the time of publication Friday.
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Photo courtesy of Walmart.
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.
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