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.
Amazon.com, Inc. (NASDAQ:AMZN)'s proposed acquisition of Whole Foods Market, Inc. (NASDAQ:WFM) is a "mild negative" to Vantiv Inc (NYSE:VNTV), according to analysts at Baird.
Baird's David Koning maintains an Outperform rating on the payment processor with an unchanged $72 price target as Amazon may chose not to use Vantiv's products and services when it fully assumes control of the organic and grocery chain.
What's Up With Vantiv
Currently, Whole Foods accounts for around 0.15 percent to 0.20 percent of Vantiv's business and Amazon may elect to use Paymentech for processing transactions. As such, a trade down in Vantiv's stock following the acquisition announcement was somewhat justified.
However, Vantiv boasts a well-diversified business and the company's five biggest clients represent 7 percent of total revenue and the top 10 clients account for 8 percent of total revenue, Koning noted. In fact, 50 percent of the entire Merchant segment revenue isISV/eComm/bank related and growing by a mid-teen digit.
Vantiv also boasts a high-single digit organic revenue growth rate and a history of delivering 19–22 percent earnings per share growth each year from 2014 through 2017. While the analyst is now modeling a 12-percent growth rate in 2018 this figure could prove to be conservative and likely to rise.
Bottom line, Vantiv's stock trading near $60 to $61 per share represents a multiple that is merely in-line with the S&P's NTM (next twelve months) multiple and Vantiv is "much better than an average S&P company)."
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Buy 'The Donald Dip' In Payments Stocks At Attractive Entry Points _______ Image Credit: Coolcaesar at the English language Wikipedia [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], via Wikimedia Commons
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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