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 Barracuda Networks Inc (NYSE: CUDA) has declined 65.57 percent over the past year, to a low of $10.09 on January 19.
- Hamed Khorsand of BWS Financial has maintained a Buy rating on the company, with a price target of $20.
- Recent news reports that the company has hired Morgan Stanley (NYSE: MS) to see whether there were any parties interested in acquiring Barracuda Networks have sent the stock up
Analyst Hamed Khorsand mentioned that the news did not come as a surprise, “since the stock has declined considerably since the beginning of 2015 as management has disappointed investors during a turnaround process.”
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Khorsand noted that investors might begin to identify some of the embedded value in Barracuda Networks’ business that would be attractive to a potential buyer and was not currently priced into the stock.
According to the BWS report, “CUDA has an established brand that is recognizable in the market. The company has approximately 269 thousand subscribers paying an average $72.41 per month. The churn rate has been historically low and customers usually end up buying more than one product from CUDA.”
Khorsand believes there could be a “handful of companies” for whom acquiring Barracuda Networks would make sense, and that a turnaround in the sales channel could drive growth in the future quarters.
“We continue to believe the Company will require one or two more quarters to turnaround its business as more subscribers transition to a cloud based product,” Khorsand added.
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.