Resmed – 1Q17 Earnings Result

Posted on | by Leon Hinde | Leave a Comment on Resmed – 1Q17 Earnings Result

Resmed reported 1Q17 results with adjusted NPAT of $88 million or 3.6% growth on the same time last year.

While the improving gross margin is a positive sign, it’s difficult to equate RMD’s 3% organic growth in the first quarter with its recent FY17 multiple of 22x earnings. The recent pull back in the share price to $7.85 could relieve some of this P/E imbalance.

We look to add to the RMD position on the current pullback. A rally back above $8.25 will provide an opportunity to sell covered calls.

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Chart – Resmed

 

Recent Buy Ideas Revisited

Posted on | by Leon Hinde | Leave a Comment on Recent Buy Ideas Revisited

Sonic Healthcare (SHL.ASX)

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Amcor (AMC.ASX)

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James Hardie (JHX.ASX)

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Lend Lease (LLC.ASX)

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Newcrest (NCM.ASX)

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Resmed (RMD.ASX)

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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 1QFY17 – Get Ready to Buy

Posted on | by Leon Hinde | 2 Comments on Resmed 1QFY17 – Get Ready to Buy

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.

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Resmed – Buying Opportunity

Posted on | by Leon Hinde | Leave a Comment on Resmed – Buying Opportunity

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)

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Healthcare Opportunities – add to your watch list

Posted on | by Leon Hinde | Leave a Comment on Healthcare Opportunities – add to your watch list

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

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Sonic Healthcare (SHL.ASX) Buy at $20.50 – $21.00 range

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CSL (CSL.ASX) Buy at $96 – $102 range

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Resmed Hits Our Profit Target

Posted on | by Leon Hinde | Leave a Comment on Resmed Hits Our Profit Target

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.

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Enjoy the proceeds of this quick profit!