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.
The annual Consumer Analyst Group of New York (CAGNY) virtual conference continued on Thursday with TreeHouse Foods Inc. (NYSE:THS) the lone pure-play U.S.-listed food company presenting.
Initiatives Success: TreeHouse said in its presentation the company saw success in its cost-savings initiatives. The private label packaged foods and beverage maker succeeded in eliminating $400 million in expenses and this helped offset ongoing macro headwinds.
The company also divested underperforming or sub-scale brands, such as McCann's Irish Oatmeal. Instead, management focused on driving growth in categories where it is "deepest and most capable."
Related Link: What Kellogg, Hershey And More Revealed At The CAGNY Conference
M&A Strategy: TreeHouse counted on acquisitions to help fuel growth in new categories. The acquisition of Riviana added depth to the attractive pasta category and will be counted on to increase TreeHouse's overall profitability in 2021. The acquisition is expected to contribute $25 million to $30 million in EBITDA in 2021, or 20 cents to 30 cents accretion per share.
Accretive M&A deals remain part of management's strategy of deepening its category presence.
2021 Outlook: For 2021, management guided sales to be in a range of $4.4 billion to $4.6 billion, Adjusted EBIT to be between $290 million to $320 million, EPS of $2.80 to $3.20, and free cash flow of around $300 million.
Beyond 2021, management set several strategic objectives, including organic revenue growth of 1% to 2%, free cash flow of around $300 million, and EPS growth of at least 10%.
(Photo by Sharon McCutcheon on Unsplash)
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.
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