Sonic Healthcare (SHL.ASX)
Amcor (AMC.ASX)
James Hardie (JHX.ASX)
Lend Lease (LLC.ASX)
Newcrest (NCM.ASX)
Resmed (RMD.ASX)
For more analysis on our recent buy recommendations and market stratagey, please keep an eye out for tomorrow’s mid-week market update video report. It will be sent out tomorrow morning as a blog post.
Resmed (RMD.ASX) reports first quarter FY17 results on the 26th of October. The result is likely to meet or exceed market expectations.
RMD is forecast to deliver 10%+ in EPS growth across the next few years. The recent acquisition of Brightree, Inova and Curative Medical will underpin both revenue and future profit growth, within an industry sector where demand continues to grow.
Out of the three healthcare buy recommendations, (CSL, SHL and RMD), made in the blog post back on 13th of September, CSL has increased 10% and SHL 10%+, however, RMD has been slower to recover. With the recent price action in RMD, we’re now more confident that a basing pattern, (or reversal), is beginning to take shape. Therefore, today’s post acts as a reminder that a buy opportunity in RMD remains, with an upside target of $9.00+
Resmed (RMD.ASX)
Within the current sell-off Resmed, Sonic Healthcare & CSL look like reasonable opportunities in a back drop of increased volatility. Here are the entry levels to add to your watch list.
Resmed (RMD.ASX) – Buy at $8.50 – $8.70 range
Sonic Healthcare (SHL.ASX) Buy at $20.50 – $21.00 range
CSL (CSL.ASX) Buy at $96 – $102 range
RMD.ASX traded at our $9.00 profit target today. The stock has put on 20% since our buy trigger. Patience has paid off here and waiting for todays earnings result has proven to be the right approach.
ResMed’s annual profit for the year to June 30 was $US352m on annual revenue of $US1.8b, up from $US1.7b. Revenue for the fourth quarter lifted 15 per cent to $US519m boosted by the acquisition in healthcare software group Brightree. Quarterly dividend raised to 33 US cents per share.
Our algorithm engines will continue to track RMD.ASX for future buying opportunities and I’ll be sure to keep you informed.
Enjoy the proceeds of this quick profit!
RMD.ASX 4Q16 results come out tomorrow. Will be interesting to see the numbers, we hold this name in the model portfolio and we’re looking for ongoing strength through to our $9.00 exit target.
Looking for NPAT of around $370 – 380million and 29 cents of dividends. Watching the sales growth rate data on the US flow generators.
Long RMD.ASX
We’ve been long RMD since the buy signal back in March at $7.30. The rally is continuing with strong bullish momentum and we suggest clients lift the trailing stop-loss and allow price to trade into the $9.00+ range before taking profit.
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