by Ian Harvey
November 27, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Newell Brands Inc. (NYSE:NWL)
Newell Brands climbed 8% yesterday after the consumer-products specialist named Christopher Peterson as its new chief financial officer; as well as positive earnings estimate revisions and better-than-expected third-quarter results as well as the sale of its Pure Fishing and Jostens businesses for combined $2.5 billion, the latest in a series of asset sales aimed at increasing its focus on more profitable consumer products. And“Mentorship Program Members”, taking a call option, realized 233% potential profit!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Details Presented Previously……..
Newell Brands Inc. (NYSE:NWL), a worldwide marketer of consumer and commercial products with a portfolio of brands including Rubbermaid food storage, home organization and reusable container products, is down -25% over the last month vs. the S&P 500 which is down -6%.
But analysts have become more favourable to Newell after better-than-expected third-quarter results as well as the sale of its Pure Fishing and Jostens businesses for combined $2.5 billion, the latest in a series of asset sales aimed at increasing its focus on more profitable consumer products.
“We think the recent sharp selloff in NWL shares is way overdone and would be aggressive buyers at these levels” writes Wells Fargo’s Bonnie Herzog. She sees shares soaring an 80% to $36.
Herzog believes the underperformance is down to a large shareholder unwinding their position (which could be close to being finished) as well as several concerns including: no news on asset sales, high leverage and exposure to China.
“We’ve talked to many investors over the past few weeks and while there is a lot of interest in the stock, few investors are willing to buy the weakness, with many suggesting they believe in the long-term opportunity but would rather wait and buy the stock on an up-swing.”
The Previous Recommended Trade……..
** OPTION TRADE: Buy NWL JAN 18 2019 21.000 CALL at approximately $0.90.
The Result So Far………
Newell Brands stock jumped 8% yesterday. The consumer-products specialist named Christopher Peterson as its new chief financial officer, taking advantage of his experience with other consumer giants in the cosmetics, fashion, and household products industries. The move follows an encouraging third-quarter financial report in early November, which included increased earnings guidance and ongoing progress on the company's transformation plan. Efforts to sell non-core businesses to raise cash have seen some success, and shareholders hope that Peterson will contribute his skills toward helping Newell get back on a solid long-term growth trajectory.
So, for “Mentorship Program” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 233% were available yesterday.
Entering the option trade at a cost of $0.90 or less; and the price of the option reached $3.00 yesterday; a profit of 233% was made in a couple of weeks. Therefore, one options contract would provide a profit of $210.00.
A NICE START TO THE WEEK!
Going forward, Newell will continue focusing on its "Accelerated Transformation Plan," which is based on divesting noncore businesses, improving operations, and deleveraging the balance sheet. The company has made some progress closing three transactions -- the Waddington Group, Rawlings Sporting Goods Company, and Goody Products -- and lowering its net debt position by $2.5 billion, compared to the prior year. While there's much work left to be done, the better-than-expected bottom-line beat was easily enough to send its battered stock price higher.
NEW Trade to consider……..
Option trade to consider: Buy the NWL MAR 15 2019 25.000 CALL at approximately $1.30.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, and it is obvious that it doesn’t apply in this case; but during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Strategies to Consider……
It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
If you not a member and interested in being part of this profitable action just CLICK HERE.
Other Membership Options…….
If you interested in "Earnings Predictions" just click here……
or "Mentorship Program".....click here....