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.
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"Credit quality deteriorated which reduced book value and pressured earnings. The combination of weaker credit quality and lower portfolio yields as TCRD moves into more secure loans has pressured earnings to the point where we believe a dividend cut is warranted and will occur," analyst Ryan Lynch wrote in a note.
"We believe TCRD's ability to cover the dividend will become challenged once their portfolio value stabilizes and TCRD's incentive fee turns back on. We estimate TCRD's earnings will be $1.25 versus the $1.36 dividend, when incentive fees return. As such, we believe a dividend cut is in TCRD's future," Lynch continued.
Lynch noted that two new portfolio companies (4 loans) were placed on non-accrual status, increasing THL's non-accruals to 7.6 percent in the second quarter, up from 2.8 percent in the prior quarter. Additionally, book value declined 2.9 percent to $11.88 due to portfolio depreciation.
Meanwhile, the analyst raised his 2016 EPS estimate to $1.49 from $1.40 on estimated reduction of incentive fee in the second half of 2016.
However, Lynch cut the price target by $1 to $11.50.
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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.