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.
Meetings with Seagate Technology’s (NASDAQ:STX) top management increased the confidence in sustainable multiple expansion, given the company’s mix shift toward higher growth mass capacity HDDs (hard disk drives) and brighter prospects for cloud capital expenditure, according to Morgan Stanley.
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!
Morgan Stanley’s Katy Huberty maintained an Overweight rating on Seagate Technology, while raising the price target from $61 to $66.
The Thesis
The roadmap of Seagate Technology’s HAMR (heat-assisted magnetic recording) HDDs (hard disk drives) could disrupt industry market share, while enabling the company to regain pricing power and resulting in margin expansion, Huberty said in the note.
She added that this could begin unfolding as the 24 terabyte HDD ramps in 2022.
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.
“Seagate believes its product roadmap diverges from competitors at 24TB as competitor roadmaps based on MAMR technology peak out at 22TB,” the analyst wrote.
She further mentioned that a mix shift to higher margin mass capacity HDDs could boost the company’s gross margin to the low 30% range by 2022, while pricing power may provide additional tailwind.
Referring to the company’s near-term prospects, Huberty said that robust cloud demand and share gains by the 16 terabyte HDD could boost revenue growth in the first half of 2020.
Price Action
Shares of Seagate Technology has risen slightly to $59.51 at the time of publishing on Wednesday.
Related Links:
13 Stocks With The Highest Returns On Equity
Stocks That Hit 52-Week Highs On Monday
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.