UPDATE: Bank of America Downgrades Windstream Corporation to Neutral, Lowers PT on Adjusted 1Q13 EBITDA Estimates


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.


In a report published Friday, Bank of America analyst David W. Barden downgraded the rating on Windstream Corporation (NASDAQ: WIN) from Buy to Neutral, and lowered the price target from $12.00 to $8.00.In the report, Barden noted, “We are downgrading Windstream to Neutral and lowering our price objective to $8. Our Neutral rating is based on 1) a valuation analysis that factors in the latest, lower, multiples among peers, 2) a view, based on our conversations with investors, that stock appreciation will remain elusive until FCF is on a clear, sustainable, positive trajectory which not a near-term event, and 3) our forecast that 2013 financials will unfold more conservatively than the current market consensus. Our 1Q13 Adj. EBITDA estimate of $587m is $7m below consensus of $594m based on our expectation that 1) spending on data center growth and Enterprise sales expansion will pressure margins in the first half of the year and 2) billing system conversion synergies will be back-half weighted. Our $8 price objective is based on a 5.6x 2014E EV/EBITDA multiple which compares to the current 5.8x and the high-yield RLEC average of 5.3x.”Windstream Corporation closed on Thursday at $8.74.

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 ColorDowngradesAnalyst RatingsBank of America