ResMed Inc.Cheap Mid-Cap GARP

reminiscences of a stock operator pdf

ResMed Inc.Cheap Mid-Cap GARP….This report presented essential “fundamentals at a glance” illustrating the past and present valuation based on earnings achievements as reported. Future forecasts for earnings growth are based on the consensus of leading analysts. Although, with just a quick glance you can know a lot about the company, it’s imperative that the reader conducts their own due diligence in order to validate whether the consensus estimates seem reasonable or not.

ResMed (RMD) represents a classic example of the earnings and price long-term correlation and relationship. When reviewing the historical graph, we discover numerous periods where the price disconnects from the orange earnings justified valuation line. However, we also discover that each time this occurs that price inevitably reverts to the mean by moving back to intrinsic value (the orange line). Currently ResMed appears to be fairly valued based on consensus forecasts, and modestly undervalued based on historical norms. Consequently, Resmed appears to be an attractive candidate for investors seeking above-average growth at a reasonable price.

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About the Author

Charles (Chuck) C. Carnevale – Co-Founder and Chief Investment Officer, has been working in the securities industry since 1970. He has been a partner with a private NYSE member firm, the President of a NASD firm, and a Vice President, Regional Marketing Director for a major American Stock Exchange listed company, and he was an Associate Vice President and Investment Consulting Services Coordinator for a major NYSE member firm. Prior to forming EDMP, Inc., he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.

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