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.
The bearish case for Nielsen Holdings PLC (NYSE:NLSN) has come to an end amid expectations for the company to partake in an M&A deal that would warrant a higher valuation, according to Goldman Sachs.
The Analyst
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Goldman Sachs' George Tong upgraded Nielsen Holdings from Sell to Neutral with a 12-month price target lifted from $20 to $25.
The Thesis
Expectations for Nielsen to participate in an M&A deal has become incrementally higher based on the multiple other deals seen in the sector, Tong said in a note. On Aug. 13, Elliot Management took an 8 percent stake in Nielsen and is pushing the company to sell itself.
Blackstone, CPP and GIC announced a pending $20 billion acquisition of a majority stake in Thomson Reuters' Financial & Risk segment while Dun & Bradstreet agreed to sell itself for $6.5 billion. The transactions are attractive to buyers given a healthy operating leverage and favorable working capital characteristics which by default increases the likelihood of a potential change of control for Nielsen.
A bullish stance on Nielsen's stock may not be appropriate as its 12- to 18-month outlook remains "relatively challenged." The company's clients in the Developed Buy segment are facing "anemic" organic revenue growth trends which limits demand for Nielsen's data offerings.
Price Action
Shares of Nielsen Holdings were trading higher by nearly 3 percent Thursday afternoon.
Related Links:
Barclays, Macquarie Upgrade Nielsen Holdings On Elliott Management Stake, Likelihood Of Sale
Pivotal Research: For Nielsen Holdings, The Reality Is Better Than The Perception
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.