In a report published Monday, BMO analyst Gerrick L. Johnson downgraded the rating on Arctic Cat Inc (NASDAQ: ACAT) from Market Perform to Underperform. The price target was lowered from $28 to $25. The analyst believes that the company's underlying earnings power does not justify the current stock valuation.
"Even with solid execution in lowering inventory levels and repairing relations with dealers, the company still is faced with the challenge of growing its business in a highly competitive field, with a decelerating growth rate, dominated by larger, high-quality competitors with superior products and stronger reputations," Johnson commented.
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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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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.
Artic Cat has been working on bringing about positive changes, and dealers have, in general, reacted positively to these changes.
According to the BMO report, "The company's decision to invest $27 million into its two main manufacturing plants in Minnesota leads us to believe the likelihood that management is "cleaning up" the company for a sale is now lower, while the likelihood of its going it alone is now higher."