Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : ResMed (RESM) -- A Proven Sleep Apnea play! -- Ignore unavailable to you. Want to Upgrade?

To: INFO_DART who wrote (2)	9/26/1998 12:06:00 AM
From: Ron Kline	Read Replies (1) \| Respond to of 14

Info D., Part of the reason I started accumulating RESM was it was recommended in a newsletter MPT review I have a trial subscription to. He recommends stocks based on a computer model he develops to look for securities in which earnings are accelerating and well as tracking movement in the stock (stability). He also watches when analysts revise estimates forward and profit margin increasing. Resmed has fit this criteria. I then noticed in IBD that the daily volume in the stock was accelerating. Someone has been buying a boatload of this company and It's a lot more than little guys like you and me. I saw also that an A+ rated fund took a stake in the company. I also noticed that the stock was moving toward the old highs even before the general market had recovered 2 weeks or so ago. I looked at the rankings of the company and it looked to have earnings and relative strength superior to other companies out there (both upper 90's). I was a little concerned that the product is only needed by about 10% of the population, and I wondered how much they could grow in this situation. Also one product companies can be risky. But I think because it's the only product on the market it looks to me like a niche situation that can grow because of their small size. I remember thinking the same when I bought Safeskin since they make only medical gloves, yet they have grown very nicely since their IPO. Beyond that I believe the momentum right now is with the stock. I expect earnings to be very good and the reason the stock has moved up lately. There should definitely be a surprise on the upside. I expect the stock to continue to outperform the market. The stock split should help for liquidity, and their new product approval should be positive going forward. I'm still relatively new to this issue so that's about all I have now. Below is a little info I have. Latest Quarterly earnings % change 65.4 Est. EPS % Change 1 mo. 0.0 Est EPS % Change 3 mo. 5.5 Annual net profit % margin 15.2 Quarterly net profit % margin 23.6 Net profit margin change 55.4% Latest Quarterly % sales increase 37.3 Beta: .410 alpha: 4.62 standard deviation 26.78% mean return: 12.39 % risk reward: .537 risk reward rank: 86 I usually use technical analysis to evaluate stocks so as far as that goes the chart gets an A+. The first stocks to go to new highs after a correction are some of the strongest issues in the next cycle. Anyway, I plan to pick up more shares in the next week because I get a good deal on commissions with this company. I'll buy a little here and there. Thanks for all your references in the intro. I'll go and check out their web site and read up more. I'll keep you up to date on the rankings and any sell recommendations he puts out. I do know that the old high is now acting as support so my guess is this level should hold and we should be able to move at least 30% from here in the coming months, probably more but we'll have to see how earnings go. Ron