Balanced Portfolio - SELL 5% Resmed (RMD) Take +10% profit
Date: 07/08/2024
*** GENERAL AVICE ONLY***
Resmed Inc. (RMD) is a global company digital health and cloud-connected medical devices. The Company design innovative solutions to treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Also, its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases
*** Trade Plan ***
We have reached out first profit target price in ResMed at $33.00 (+10%) where we intended to trim half the holding. This has unfolded in just 8 days
With the recent volatility in markets and the looming earnings release from GLP-1 and Sleep Apnea drug maker Eli Lilly on Thursday night, we are recommending selling the whole 5% holding and going back to cash as the broader market risks are too high
Current Portfolio Allocation: 5%
Recommendation: Sell 5% holding (take profit +10%)
Look to re-enter around $28.50
We will definitely look to re-enter ResMed at lower prices, the Drug Maker updates on GLP-1 drugs have consistently provided opportunities to buy at lower prices.
Balanced Portfolio - Buy 5% Resmed (RMD)
Date: 29/07/2024
*** GENERAL AVICE ONLY***
Resmed Inc. (RMD) is a global company digital health and cloud-connected medical devices. The Company design innovative solutions to treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Also, its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases
*** Trade Plan ***
We recommend buying ResMed Inc. (RMD) due to its potential for strong performance in the upcoming earnings season, which is just three days away. ResMed’s recent sell-off was triggered by announcements of positive results from GLP-1 drugs, a factor that has impacted the stock before but has not sustained long-term negative effects. Historically, ResMed’s price has recovered well following its earnings reports, thanks to its consistent financial strength and market leadership. The company has demonstrated robust growth, with net revenue for the nine months ending March 31, 2024, reaching $3.46 billion, and a solid net income of $728.7 million. Its innovative product portfolio in sleep and respiratory care, coupled with strategic acquisitions and a strong balance sheet, positions ResMed to capitalize on the growing demand for digital health solutions and home-based healthcare. With its dominant market position and continuous R&D investment, ResMed is well-prepared to deliver impressive results and rebound strongly, making it a compelling buy ahead of its earnings report.
Total Portfolio Allocation: 5% of Portfolio
Entry Price: $30.20 | Profit Target: $36.00 | Stop Level: $27.00
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.