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.
D.A. Davidson analysts advised investors to wait for headwinds to die down before taking a call on Barracuda Networks Inc (NYSE: CUDA) shares. The analysts have a Neutral rating and $15.50 as the price objective on the company's shares. The comments come two days ahead of the company's first quarter earnings report.
In a note, the analysts said, "Barracuda continues to deal with competitive pressures from public cloud companies as well as an industry transition from on-premise equipment purchases (which can be appliances or subscriptions) to cloud and virtual-based form factors."
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The brokerage sees Barracuda Networks' cloud-based solutions are ramping quickly. However, the two analysts expect the transition to offer a headwind to "overall growth for some time." The analysts remained on the sidelines waiting for headwinds to die down so that valuation could be enhanced.
As far as the expectation for the first quarter, the analysts expect 7.7 percent YOY increase in revenue to $84 million. The brokerage expects subscription to fuel 74 percent of the total revenue and the balance 26 percent is expected to come from Appliance that is in line with the earlier quarter.
Davidson said, "For EPS, we are estimating $0.11. We also expect free cash flow from operations will be positive and that net cash per share will increase." The brokerage expects Barracuda Networks to provide guidance of $83-$85 million and EPS of $0.10 - $0.111 for the second quarter.
The stock traded down 2.3 percent at $14.82.
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.