UPDATE: Stifel Downgrades Flextronics


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 Monday's morning summary, Stifel analyst Matthew Sheerin downgraded Flextronics International (NASDAQ: FLEX) from Buy to Hold.Sheerin explained the downgrade is due to the pending acquisition of Motorola Mobility by Lenovo. Motorola Mobility is currently Flextronics' largest customer, and although Lenovo has not announced plans for Motorola, it does count manufacturing as a core competency, according to Sheerin. Furthermore, Sheerin estimates that the loss of Motorola as a customer could account for a $2.7bn-$3bn drop in sales for Flextronics.Sheerin appears to be confident in the ability of Flextronics' management to handle a "difficult demand environment," but also suggests caution in the near-term until more information on the effect of this pending acquisition is available.

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 ColorNewsDowngradesAnalyst RatingsMatthew SheerinStifel