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.
Shares of TrueCar Inc (NASDAQ: TRUE) are down almost 35 percent on Friday trading, after the company preannounced negative second-quarter results and trimmed its full year guidance on the back of considerable softness across the business. The actual figures will be announced on August 6.
In a report rolled out Friday, Goldman Sachs analystDebra Schwartz and her team look into the preannouncement and conclude that headwinds are bigger than expected. Consequently, they remove the stock from the firm’s “Americas Buy List” and assign it, instead, a Neutral rating and $8.00 price target – down from $17.00.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
A Closer Look At The Numbers
According to preannouncement, revenue is expected at $65-$65.3 million, down from a previously expected $67-$69 million. Full year guidance was also trimmed by $30 million at the midpoint to $252-$258 million. The trimmed guidance and “potential for further dealer loss, visibility on revenue growth sustainability is uncertain.”
The analysts also note that, “Unit volume was significantly weaker than expected and with AutoNation dealers recently exiting the platform and risk of additional losses stemming from outstanding litigation.”
Adjusted EBITDA is projected to be roughly breakeven, as high marketing and product investments coupled with softer topline performance limited profitability.
For the second quarter, Goldman Sachs’ analysts are now modeling a net loss of ($0.05) per share, well below consensus, which calls for earnings of $0.02 per share.
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.