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.
- The share price of SUPERVALU INC. (NYSE: SVU) has declined 47.69 percent over the past one year, dropping to a new 52-week low of $4.74 on Thursday.
- Deutsche Bank’s Karen Short has downgraded the rating on the company from Buy to Hold, while lowering the price target from $8 to $6.
- Apart from its “shaky” fundamentals, Short believes that the stock’s risk profile and lack of visibility into the top line have meaningfully increased.
Analyst Karen Short listed some specific concerns, such as expectations of Save-a-Lot (SAL) IDs not re-accelerating in the near term due to continuing deflation, as well as negative traffic trends.
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!
Short also expressed concern that “SAL’s strategy to increase the mix of corporate-owned stores could create a structural headwind,” and that there had been a lack of top line momentum at Independent, where sales had declined 3 percent year-on-year in 3Q.
The uncertainty regarding the CEO position and TSA remaining a “black box” model were also listed as areas of concern.
Recent Reports
The company reported its 3Q adjusted EPS at $0.16, in line with the estimate and the consensus, with EBITDA of $182 million beating the estimate, driven by the IB business. Total sales were also marginally ahead of the estimate, while Supervalu has been seeing robust results in Las Vegas.
Management has reaffirmed its gross new store opening target for FY16 at over 90.
The FY17 EPS estimate has been lowered from $0.70 to $0.69
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.