UPDATE: ISI Group Reduces PT to $32.50 on Cepheid Following Negative Pre-Announcement


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.


ISI Group reiterated its Underweight rating on Cepheid (NASDAQ: CPHD) and lowered its price target from $35 to $32.50. ISI Group noted, "Cepheid negatively preannounced its 3Q earnings. … The company stated that this revenue shortfall was due to an intermittent interruption in the supply of Xpert cartridge components. … This is CPHD's third straight Q of mis-steps, and the reiteration of revenue guidance implies a very strong fourth quarter. Given that the hospital CapEx environment is unlikely to improve in the near term and that EPS guidance is likely to be revised downward (we are currently below the low end of CPHD's FY12 revenue guidance), we think that the EV/Revenue multiple needs to fall to 5-7x vs. the current 7-9x trading range."Cepheid closed at $39.15 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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