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.
Raymond James’ John W. Ransom mentioned that Community Health Systems (NYSE: CYH)'s Quorum Health Corporation When Issued (NYSE: QHC*) transaction does not appear to have any financial benefit for shareholders.
Ransom downgraded the rating on the company from Market Perform to Underperform.
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The analyst believes that “there could be post-spin selling pressure for both technical reasons and for fundamental reasons.”
The Spin Makes No Financial Sense
Although spinning out non-core assets might make strategic sense, Ransom believes that the sale makes “little financial sense,” given the additional costs on Quorum, especially the meaningfully higher interest costs, would mean that the two entities would earn less separately than they did together.
Ransom estimates that the pro forma net interest expense of the two entities would rise by $48 million.
In addition, the spin would lead to increase in Community Health’s already high leverage.
The analyst also pointed out that there could be “potential short-term technical pressure on QHC shares as CYH holders will inherit QHC stock with an expected market cap of
Estimates Revised
The 2016 revenue, EBITDA and EPS estimates have been lowered, as have the 2017 revenue, EBITDA and EPS estimates.
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.