Credit Suisse's 5 Energy And Utility Stocks To Avoid


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 recent report, analysts at Credit Suisse outlined their 2015 outlook for energy and utility stocks. Here’s a breakdown of their top stocks to avoid in 2015.

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1. CVR Refining LP (NYSE: CVRR): Analysts see a risk of Cushing margin compression, and they believe that CVR will struggle to compete with peers in the sector. Credit Suisse is projecting below-consensus earnings for CVR in 2015. Price target: $19.00 2. SandRidge Energy Inc. (NYSE: SD): Analysts believe the risk associated with SandRidge’s extremely high leverage will likely lead to significant capex cuts in 2015. These spending cuts will limit production growth and cash flows, and the company will likely underperform as a result. Price target: $2.80

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3. Swift Energy Company (NYSE: SFY): Analysts predict that the company will outspend its cash flow in 2015 to deliver gas growth, and they do not see many options for deleveraging from that scenario in such a weak commodity price environment. Price target: $3.00 4. Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE: YGE): This Chinese tier 1 manufacturer has the highest debt levels in the industry. Analysts believe the extreme debt load will drag on the company and limit its ability to deploy working capital and expand operations. In addition, the interest owed on the company debt will sap earnings. Price target: $3.50 5. Southern Co (NYSE: SO): Repeated cost overruns at the Kemper County plant, the uncertainty of pending litigation and the likelihood of subpar earnings growth (3-4 percent) make Southern an extremely risky investment. Price target: $48.00

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.


Posted In: Analyst ColorShort IdeasPrice TargetAnalyst RatingsTrading IdeasChinaCredit Suisse