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.
Credit Suisse’s Jamie Cook believes the 11 percent selloff in Oshkosh Corp (NYSE: OSK) shares on September 23, following the company’s “disappointing but realistic” FY17 and long-term guidance, was overdone.
Cook upgraded the rating on the company from Underperform to Neutral while raising the price target from $50 to $54.
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!
Underappreciated Business
The analyst believes Oshkosh’s Defense business had been underappreciated, and mentioned that the company has won additional international M-ATV business, along with the JLTV, which is expected to support the EPS in the event of Access seeing a downturn.
In addition, Cook pointed out that “the Commercial and F&E segments are now experiencing market tailwinds coupled with a self-help story.”
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
FY17 Guidance
Oshkosh guided to adjusted EPS of $3.00–$3.40, below the consensus forecast for FY17, driven by muted expectations for Defense sales and margin due to timing, as well as lower than expected, albeit realistic, margins for Access Equipment.
The company guided to free cash flow of $0–$50 million, associated with a build in working capital related to International MATVs, which Oshkosh is expected to recoup in H1:FY18. This is expected to drive above average free cash flow in FY18.
For FY16, the company has raised its EPS guidance to $2.85–$3.00, driven by earlier than expected International MATV shipments.
The FY16–FY19 EPS estimates have been revised.
At time of writing in Monday's pre-market, Oshkosh was up 1.22 percent at $51.50.
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!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.