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 analyst Ebrahim Poonawala recently took an in-depth look at potential buyout targets in the banking space. Bank of America’s M&A Scorecard ranks potential buyout targets based on thirteen different criteria, including social factors, bud triggers and sell triggers.
“We believe challenged revenue growth and rising burden of tech/compliance costs make the option to merge in order to derive economies of scale appealing,” Poonawala explained.
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!
Although slumping bank stocks have led many of the larger players to shift their spending focus to share repurchases, Poonawala believes that the attractive valuations of several potential takeover targets will be hard to resist.
He added that, even in the absence of rising rates, quality deposits are still a major factor for potential buyers.
Poonawala believes that investors should consider the strong possibility of M&A when determining their banking investment strategies.
Top Buyout Targets
Bank of America sees the following 10 bank stocks as the top buyout targets:
- Associated Banc Corp (NYSE: ASB)
- Capital Bank Financial Corp (NASDAQ: CBF)
- Comerica Incorporated (NYSE: CMA)
- FCB Financial Holdings Inc (NYSE: FCB)
- First Horizon National Corp (NYSE: FHN)
- First Republic Bank (NYSE: FRC)
- First South Bancorp, Inc. (NASDAQ: FSBK)
- IBERIABANK Corp (NASDAQ: IBKC)
- Prosperity Bancshares, Inc. (NYSE: PB)
- Synovus Financial Corp. (NYSE: SNV)
Disclosure: The author holds no position in the stocks mentioned.
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.