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.
Old Second Bancorp Inc. (NASDAQ:OSBC) has completed its transformation phase and is well-positioned for strong growth and industry-leading profitability while maintaining a healthy core deposit base, according to Raymond James.
The Analyst
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!
David Long initiated coverage of Old Second Bancorp with an Outperform rating and $15 price target.
The Thesis
A focus on community banking has enabled Old Second Bancorp to build a stable and low-cost deposit base, Long said in the Monday initiation note.
As of the fourth quarter, the bank’s deposit base was comprised of 49 percent savings, NOW and MMA; 29 percent noninterest bearing demand; and 22 percent time deposits, the analyst said.
"This mix has been very beneficial during the current tightening cycle," he said.
Chicago is among the nation’s most fragmented banking markets, which gives Old Second Bancorp the opportunity to selectively acquire small community banks that are most aligned with its offerings, Long said. This allows the bank to add scale and increase its Chicago presence, he said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
In turn, Old Second Bancorp is also an attractive acquisition target for larger banks in Chicago given its enhanced credit profile, strong return metrics and stable low-cost deposit base, the analyst said.
The bank’s ability to accelerate the generation of excess capital lends upside to EPS estimates, which do not reflect any acquisitions or share buybacks, Long said.
The stock is trading at a discount to peers and is positioned for outperformance ahead, according to Raymond James.
Price Action
Old Second Bancorp shares were up 0.45 percent at $13.29 at the time of publication Tuesday.
Related Links:
Raymond James Upgrades Wells Fargo, Says Tim Sloan's Retirement 'Removes A Headwind'
A 'Bullish Sign': Analysts Positive On BB&T's Mega Merger With SunTrust
Photo by Dustin Blitchok.
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.