Cabot Industries (CBT)
Solid chemical company with local manufacturing plants allover the world, it is trading around 0.5 P/S,
It's debt is around 1 billion dollars,
yearly sales are about 3.2 billion,
outstanding shares 56.68 Million
short interest around 1.3 %
CBT options are thinly traded, but could be worth the risk to open long position for earnings and dividends towards end of May ? or buy the stock out right and sell covered calls ?
The other way to make money is to sell out of the money puts for premium.
Question: How badly sales will be affected by Covid 19 in next Q's ?
AIG Call Option to buy at $25 Strike with Expiration May 15th, for total cost $95.
Reasons for buying this Call are coming earnings on May 8th , tight trading range, good technical base, stock is oversold, gap around $30, possible recent buyback which could affect earnings on plus.
Cons: overall market looks bearish, current Covid 19 lock down will affect rest of the year with shrinking revenues and earnings in multiple sectors,.... but this bearish sentiment could also mean high short interest in the market, which could prevent stocks to go south any time soon.
Neutral observations: High institutional ownership at 93.4 %, Low short interest at 1.64 %
This transaction was Open on Friday 4/24/2020
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Picture by MarketChameleon.com
