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Consensus community valuation
$24.66
Average Intrinsic Value
1.6%
Overvalued by
Active Member Straws
#Bull Case
Last edited 5 months ago

I stand corrected on use of Resmed masks for Covid-19. The following was publised yesterday 23/3 on Resmed website. It is well worth a read for anyone interested.

https://investors.resmed.com/investor-relations/events-and-presentations/press-releases/press-release-details/2020/ResMed-Statement-on-COVID-19/default.aspx

A few points from the press release.

They have 7500 people working in 140 countries to deploy ventilators and masks. They have cloud-connected machines so that patients can be monitored remotely.

"ResMed is taking every measure possible worldwide to maximize the production of ventilators, masks, and other respiratory devices. We are looking to double or triple the output of ventilators, and scale up ventilation mask production more than tenfold. "

Also they have been involved since start in Hubei province. "...one ResMed hero who, since early January, has donned a positive pressure hazmat suit, and helped set up thousands of people on ResMed ventilators and ResMed masks. There are also 100-plus ResMedians from Malaysia who in mid-March volunteered to keep working in our Singapore manufacturing plant when Malaysia closed its borders, relocating to live near our plant in Singapore, spending weeks away from their families, so they can continue to produce as many lifesaving ventilators and ventilation masks as possible. "

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#Financials
Last edited 5 months ago

Although not on my scorecard I have been lucky enough to own RMD. I have been thinking of selling because of the P/E at 45 and whether I can use that cash to get more of an upside on the other side of covid-19. RMD holding its value has effectively gone up 20%-30% in comparison to stocks that have been smashed. I got close to selling yesterday but didn't. One reason was the recent report with Brightree delivering operating leverage. I have pruned some cash over the past week to buy small amounts of other stocks.

I looked to see whether their products help with COVID 19. My reading is that they don't. In fact there are special instructions to make sure you don't infect others with their use. I'm not doctor so I caould be wrong. THe article below is interesting in that a RMD spokesperson said they have increased orders from Asia, but other companies are talking about increased sales to hospitals.

https://www.connectradio.fm/2020/03/14/well-take-them-all-demand-for-ventilators-spikes-as-coronavirus-looms/

A spokesperson for the San Diego-based firm ResMed said they are currently filling a higher-than normal number of orders from China and South Korea. “ResMed is confident it can meet current global demands,” the official said

I am still deliberating keep, sell half, sell all.

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