April 2020


Stock I'm watching this month:-

RMD - ResMed Inc.

Sector: Healthcare
Market Cap: 36.47 Bil
Price/Earnings: 78.42
Price/Book: 15.73
Return On Equity: 21.59%
Return On Assets: 10.61%
Debt/Equity: 61.95%

Reasons to watch: RMD is a healthcare technology company operating in the sleep apnea space. They manufacture devices that helps respiratory disorder and offers software as a service solutions. As RMD manufactures respirators, their sale has been going through the roof during the COVID-19 pandemic. In response to the high demand, RMD is also planning to double or triple their respirator production.

Risk: The valuation is quite rich. CPAP masks are also known to be quite uncomfortable. There are other companies such as OVN and IHL who are trying to penetrate the sleep apnea space, offering alternative solutions.

Sentiment: Buy
Disclosure: Held
Current Price: $24.57
My Strike Price: $20 (Discounted Cash Flow Intrinsic Value: $20)


Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.

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