UPDATE: Pritchard Capital Markets Initiates Buy, $72 PT on SM Energy


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.


Pritchard Capital Markets initiates its coverage on SM Energy (NYSE: SM) with a Buy rating and a price target of $70. Pritchard Capital Markets notes, "SM had a solid year in 2011 and we anticipate the company will continue to post strong production growth in 2012, primarily driven by its Eagle Ford, Williston Basin, and Granite Wash assets. Additional upside exists from SM's Permian and DJ and Powder River Basin positions. The company has a balanced portfolio of assets that allows it to exploit liquids in the near term, with long term natural gas optionality as the majority of its dry gas assets are HBP. Based on our current assumptions, we calculated SM has an NAV of approximately $90, with the company's operated Eagle Ford position accounting for roughly 39% of the NAV."SM closed at $53.61 on Wednesday.

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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Posted In: Analyst ColorPrice TargetInitiationPre-Market OutlookAnalyst RatingsPritchard Capital Markets