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.
General Electric Company (NYSE:GE) shares have lost roughly a quarter of their value year-to-date, even as the company is embarking on a multiyear transformation plan to turnaround operations and refocus on core industrial businesses.
An analyst with the lowest price target on the sell-side lowered it even further Thursday.
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!
The Analyst
JPMorgan analyst Stephen Tusa maintained an Underweight rating on GE and lowered the price target from $11 to $10.
The Thesis
The impact on asset value from a failure with a GE gas turbine product is a negative development for a company that has "little wriggle room," Tusa said in the downgrade note. (See the analyst's track record here.)
Wall Street Vet Reveals $9 Options Secret
Tired of tiny stock gains? This 40-year insider is spilling the beans on how to turn small investments into 600% returns. Get his proven options strategy in a FREE webinar.—Register now – seats are limited!
Citing company officials and the customer, the analyst said the company has experienced a failure in a first-stage blade on a H-frame in one of its two initial marquee installations in the Colorado Bend.
Despite the company downplaying the issue as an "oxidation issue," Tusa said the problem is material enough for the customer, Exelon Corporation (NYSE:EXC), to have a plant shutdown.
GE Power has company-specific issues around the H-frame technology and potentially the profitability of the related future services stream, some of which sits on GE's balance sheet of $9 billion in contract assets, according to JPMorgan.
The Price Action
GE shares were down 3.11 percent at $12.46 at the time of publication Thursday.
Related Link:
Morgan Stanley Starts Coverage Of Electrical, Multi-Industry Stocks Threatened By Tech Advances
Barclays Constructs A Bullish Call On Caterpillar, CNH Industrial And Others
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.