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.
Argus downgraded Johnson Controls International plc Ordinary Share (NYSE:JCI) to Hold from Buy, saying that the company’s top-line growth is proving more challenging than initially expected. In this scenario, the brokerage would become constructive on the stock only in the mid-30s.
“Currently, sales growth is a problem, and we suspect that challenges at the top line will prevent management from achieving earnings growth in the upper end of its wide range,” analyst John Eade wrote in a note.
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Analyst's Commentary
Johnson Controls recently confirmed its 2017 guidance EPS forecast range of $2.60–$2.75, implying growth of 13–19 percent. Second-quarter EPS guidance calls for a range of $0.48–$0.50, in a seasonally slow quarter.
Based on the weaker-than-expected sales trends, Eade cut his fiscal year 2017 EPS estimate to $2.67 from $2.70.
Related Link: Biotech, Qualcomm, Twitter, Uranium: Fast Money Picks For February 14On the technical front, the analyst noted that the shares appear in a bearish trend of lower highs and lower lows that date to September 2016. In mid-January, the 50-day trend line crossed through the 200-day trend line and is still pointing lower.
“We will look to get this well-managed company back on the BUY list should the shares fall back toward support in the mid-$30s,” Eade added.
At last check, shares of Johnson Controls fell 1.49 percent to $41.13.
Image Credit: By Zákupák - Own work, Public Domain, via Wikimedia Commons27% 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.