MoneyGram Downgraded At Macquarie; M&A Rumors Aren't Enough


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 Wednesday, Macquarie analyst Kevin McVeigh downgraded the rating on Moneygram International, Inc.

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(NASDAQ: MGI) from Outperform to Neutral, with a price target of $11. The analyst believes that the risk/reward profile of the stock is "underwhelming," with limited upside and lack of near term catalysts.The stock has surged about 22 percent on speculations of The Western Union Company (NYSE: WU) being in talks to acquire Moneygram. Western Union has, however, denied being in any discussions with the company. The analyst believes that the strength in Moneygram's stock valuation offers an opportunity to invest in Xoom Corp. (NASDAQ: XOOM).Although Xoom's stock has also rallied in recent times, there are several near-term catalysts that could drive further upside. The stock is also expected to benefit from the continuing shift to mobile payments.The EPS estimates for 2015, 2016 and 2017 for Moneygram have, however, been remained unchanged.

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 ColorDowngradesAnalyst RatingsMacquarie Research