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.
CubeSmart (NYSE:CUBE) is facing elevated supply pressures and risk of negative SS NOI (same-store net operating income), according to BofA Securities.
The Analyst
BofA analyst Jeffrey Spector downgraded CubeSmart from Neutral to Underperform, reducing the price target from $33 to $31.
The Thesis
CubeSmart is at more risk than its peers to supply pressures, given that it continues to have the highest number of new supply under construction as a percentage of existing stock, Spector said in the downgrade note.
BofA’s proprietary webscraping data indicates continued decline in street rates in New York and Washington DC, while Miami and Dallas remain weak, the analyst mentioned. He expects a continued deceleration in CubeSmart’s top line growth in 2020.
Although the company was able to better control marketing expenses versus its peers in 2019, “we remain concerned over this volatile line item in the face of increased supply pressures,” Spector wrote, citing the massive increase in marketing by peers last year.
“Since SS NOI is close to going negative, we are wary of any swings in marketing expenses,” the analyst said, while added that this would be “a negative catalyst for the stock.”
Price Action
Shares of CubeSmart were down 0.76% to $31.39 at the time of publishing on Monday.
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.
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