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.
Macquarie initiated coverage on GOGO (NASDAQ: GOGO) Tuesday at Neutral with a $21 price target (15.8 percent upside).
One of the first notes in the research report is that Macquarie prefers Global Eagle (NASDAQ: ENT) to GOGO. Other than competition, high capex and limited content are reasons why Macquarie is wary of GOGO.
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Regarding competition, analyst Andrew Degasperi writes, “Gogo’s iron-clad 10-year agreements are likely to shield the company somewhat as it upgrades its technology but the launch of AT&T 4G LTE service in 2015 could impact future agreements and increase opex. We estimate sales and marketing expenses will increase 1-2% of revenue by 2016.”
Further, “Gogo’s cash capex intensity of 20%+ of revenue relative to Global Eagle’s ~4% will lead to significant cash burn through 2016.”
With GOGO trading at 11 times 2016 EV/EBITDA, Degasperi prefers Global Eagle, which currently sits at a 40 percent discount to that ratio. The $21 price target on GOGO is based on 12 times 2018 EBITDA.
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.