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.
- Credit Suisse analyst Kaumil Gajrawala reiterated an Outperform rating on the shares of Boston Beer Co (NYSE:SAM) and raised the price target to $405 from $385.
- The analyst said the decline in Seltzer continues, but Twisted Tea’s momentum (+39%) gives him confidence that Boston can hit guidance.
- He said margins in Q3 FY22 will rebound as Boston laps last year’s write-downs and sees the benefit of pricing. The analyst sees a 45% gross margin.
- While new Truly growth expectations were still too optimistic, he cited, charges that hurt gross margin by nearly -1,400bp will not reoccur.
- Boston Shares are down 30% year-to-date and trade at about 15 times NTM EBITDA, which is a premium to other beverage alcohol peers.
- The analyst noted Boston is beginning to emerge from a period of under-earning due to Truly’s explosive growth.
- He added that the forward expectations assume a return to historical profitability (18-20% EBITDA margin) as costs are optimized for normalized volumes.
- Gajrawala thinks profitability rebound is happening on less co-packer volume, production efficiencies, lower input costs, and tailored media spend.
- He listed a downturn in trade, share losses, and margin recovery as possible risk factors for the company.
- Boston Beer is expected to report results on Oct. 20.
- Price Action: SAM shares are trading higher by 0.90% at $353.83 on the last check 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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