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.
Bank of America Merrill's Evan Morris said that TreeHouse Foods has good upside potential at current levels. Morris pointed to two factors that drive his assumption.
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!
Revised Earnings
First, over the past three quarters, TreeHouse significantly revised its earnings downward. That pattern is about to come to an end, Morris said.
"We do not believe there will be a need for another significant guide down," Morris argued, despite the fact that the "operating environment in the food and beverage industry remains difficult."
Flirting With Private Label Business?
Second, Morris suggested that TreeHouse might be a natural suitor for ConAgra Foods Inc (NYSE: CAG)'s private label business. In August, the New York Post reported that the company was considering acquiring the business for $3 billion.
If TreeHouse were to close that deal, Morris suggested that it would "provide upside risk to our new $88 price objective." That upside would be the result of the fact that TreeHouse's ability to "fix or improve" the business.
Image Credit: Public Domain27% 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.