ResMed Inc.

ASX:RMD

ResMed Inc.

ASX:RMD
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$32.96 (+0.6%)
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#4
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60
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Reports (7) My Report Forum Investors
Forum Topics RMD RMD #KneppyOnResMed

Pinned straw:
thunderhead
Last edited 9 months ago

Presents a balanced view of the bull/bear points post-Q4 and FY results, but like a lot of market participants, seems to be concerned about the gross margin contraction trend.

https://www.youtube.com/watch?v=oy6TliSlFJA&t=26s
mikebrisy
9 months ago

@thunderhead Quite a good overview of the numbers. But it doesn't really even get into proper first order thinking. Why has GM% fallen, and what does that mean going forward? What is the pathway to drugs reducing the symptons that create SA, and what is the pathway for this competition to reduce market demand (economics, market penetration etc.)? What is the source of competitive pressure and how might this change going forward (current, add back Phillips, other devices).

All that said, the end conclusion is the same in that over coming quarters the market will focus on the %GM result and the % revenue growth result, and SP will move accordingly. Thanks for sharing.

22
Solvetheriddle
9 months ago

@thunderhead thanks ive never heard of these guys, no lack of opinion in investments, ive found! GM 4% below the 8 year average, is some cause for concern, there are a lot of moving parts in GM that RMD go through every result. ASP is the big one that needs to hold. i think with Phillips out of the market some were probably expecting better, but depends on mix. re the new drugs from NVO and LLY, i think people were asleep at the wheel on these. even if they prove impotent to stop RMD LT, they were likely to cause some issues with the RMD SP, no one really mentioned them until now, adding to concerns. pill subsidisation would potentially change the thesis. imo its worth backing and i have IRL. every couple of years you get a chance at RMD.

14
edgescape
9 months ago

Saw the EZZ Life sciences recording on KneppyInvests. He nearly got me on the impressive quarterly. But failed to dive deeper on what the company was selling and their segments which I was not keen on.

8
thunderhead
9 months ago

No worries @mikebrisy. I came away with similar first impressions. Your argument for RMD "sacrificing" margin optimisation for grabbing more market share makes a lot of sense to me.

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