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 Lynch’s Ken Hoexter mentioned that Kansas City Southern (NYSE: KSU) reported its 1Q results with the EPS beating the estimate and the consensus.
Hoexter upgraded the rating on the company from Underperform to Buy, while raising the price objective from $77 to $160.
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1Q Performance
“KSU has cut costs, furloughing 12 percent of its TE&Y employees & parking 12 percent of its locomotives to offset near-term volume declines,” Hoexter stated.
Kansas City Southern reported its operating ratio for 1Q16 at 66.6 percent, 110 bps above the estimate and reflecting a 230 bps year-on-year improvement.
Although the EPS came in flat year-on-year, it marginally beat the estimate and the consensus. However, revenues declined 7 percent year-on-year and was below the estimate.
In addition, while operating expenses below the estimate, operating income beat the estimate.
Kansas City Southern’s “positive long-term outlook for growth in autos, energy and intermodal is being offset by short-term uncertainty, as competition from trucks pressures intermodal given excess capacity and plant closures slow auto volumes,” Hoexter said.
Stock Performance
“It is the only rail to post volume growth recently, as it begins to rebuild its case for a steady premium valuation gap to its peers,” the analyst noted.
Although Hoexter believes that there could be a pullback in rail stocks in the near term, the analyst expressed confidence that the company would be able to execute over the next 12 months.
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.