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.
Dell Technologies Inc (NYSE:DELL), which recently returned to the public markets through an unconventional transaction, is a worthy investment, according to Raymond James.
The Analyst
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Analyst Simon Leopold initiated coverage of Dell shares with an Outperform rating and a $57 price target.
The Thesis
Even as Dell's debt burden and limited access to VMware, Inc. (NYSE:VMW)'s cash weigh on the shares, the company's market share gains and benefits from favorable enterprise spending patterns — along with de-levering of its balance sheet can unlock value — Leopold said in a Monday note.
Dell is confident of expanding share in its core markets, namely servers, storage and PCs, the analyst said.
The company's integration with EMC has come along after years of poor execution, he said, citing channel checks.
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The launch of a new midrange storage platform in late 2019 is a catalyst, Leopold said. Worries over webscale exposure in servers is overdone, he said, as it accounts for than 10 percent of server sales.
The top PC makers, including Dell, are consolidating their market share, the analyst said. Dell may gain from HP Inc (NYSE:HPQ)'s pain, he said.
Notwithstanding a lack of near-term catalysts, Raymond James said evidence of share gains and refinancing debt could help the stock.
The firm's estimates call for calendar 2018 sales of $91.5 billion and non-GAAP EPS of $6.30. For calendar 2020, Raymond James estimates sales growth of 4.4 percent to $95.5 billion and non-GAAP EPS of $6.86.
The Price Action
Dell shares were trading up slightly at $46.91 at the time of publication Tuesday.
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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.