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.
Salesforce.com, inc. (NYSE: CRM) followed up a disappointing Q2 earnings report with a much-needed strong performance in Q3. Shares are up 3.5 percent following the news, and Deutsche Bank analyst Karl Keirstead is bullish on the stock.
According to Keirstead, the weak Q2 followed by rumors of a Twitter Inc (NYSE: TWTR) buyout provided a buying opportunity for investors in Q3.
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!
Positives
“Coming after a negative 2QF17 print and months of Twitter-related anxiety, merely posting a clean quarter with an in-line or better guide is enough to restore confidence,” Keirstead explained.
He believes the company’s fresh guidance implying an acceleration in billings growth to 25 percent in Q4 suggests Q2 was simply a bump in the road. Deutsche Bank is still calling for billings growth of 20 percent in fiscal 2018.
He also mentioned Q3 deals with Amazon.com, Inc. (NASDAQ: AMZN), PNC Financial Services Group Inc (NYSE: PNC) and Citigroup Inc (NYSE: C) were all nice additions.
Keirstead also likes the positive tone on growth that CEO Keith Block had in the earnings call.
One Negative
On the other hand, Keirstead notes that ex-DWRE billings growth came in at just 17 percent, short of the 20–30 percent range Deutsche Bank expects from the company.
Deutsche Bank maintains a Buy rating on salesforce and a $90 price target for the stock.
At last check, salesforce was up 3.07 percent at $77.50.
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.