בס״ד

THREE Juicy Burger Profits — 1233%, 767% & 333% — while JABIL Sounds Off (JBL, VVV, TEX, OSK)

Posted on October 9, 2023

We traded Jabil, Inc. (NYSE:JBL) back in mid-August for a healthy 525% win, and now we’re swinging again for the fences.

JBL, you’ll recall, does electronics.

Among other things.

But the stock… well, she’s got a mind of her own.

And that’s the reason we’ve chosen her to underlie this week’s mastodon-sized 4900% potential profit!

No Joke.

But before we do, we have several biggies to close.

And we’re starting with VVV.

Details of the trade can be gotten HERE.

To sum, we’re holding the December 15th 35 synthetic short and a debit of $2.55.

And…?

The short can be closed today for a gain of $3.20 (3.70/0.50).

Buy back the CALL and sell the PUT, and you exit with $0.65 NET on nothing laid out.

Adjusted for minimal commissions gives you a gain of 333%.

Now go spread it around with a butter knife.

——————————

Next up is our OSK initiative, the particulars of which are located HERE.

In brief, we’ve got a $1.35 credit in hand with the initial CALL spread still open (October 20th 110/115).

And we believe it’s now time to shut her down for good.

Buy back the short CALL for $0.05 and you mosey out with $1.30 NET on no initial outlay.

And that makes for a generous 767%.

Finally, our TEX trade begs for closure.

Full data on the initiative can be sourced HERE, but the gist is: we’ve got a $2.40 credit and are holding tight the December 15th 55 synthetic short.

And with the stock now at $53.11, we’re walking.

Buy back the short CALL for $3.30 and sell the PUT for $4.60 and yours is $3.70 NET on $0.30 spent.

And that’s—

1233%

Not bad…

Above is the lifetime MONTHLY chart for JBL.

Are you a buyer here…?

What do you take me for?!

Good on ya, squire.

Now this—

The fundamentals on JBL are not so melodic.

Consider…

  • P/E is 21.62, yet a year from now analysts are suggesting that number will be sliced, diced and julienned to a mere 12.10. That would herald a stock price of roughly half its current size, all things being equal.
  • But will all things be equal? No, say those same analysts.  They’re also expecting profit growth of 12.42% over the next year.  A far cry from the roughly 100% gain that would be required to maintain the existing stock price at a multiple of 12.10.  Oh, well…
  • Dividend Yield is a flaccid 0.25%, while…
  • Price to Book is a wild-eyed 6.24.
  • The company carries too much debt—D/E is 1.13, and…
  • Despite the massive gap higher that followed the latest earnings report, EPS for the quarter actually SHRUNK by 48.80% Q/Q(!), and…
  • Sales SHRUNK by 6.33% Q/Q!
  • To top it off, insiders sold $15 million in stock in the last six months, of which $14 million was unloaded in just the last seven days.

So what’s that tell you…?

Have a look at the daily—

And may the G-d of Israel’s Holy Name be sanctified on earth as it is in heaven.

With kind regards—and abundant prayers for the people and land of Israel.

Gog u’Magog is upon us.

Hugh L. O’Haynew

 

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