Resmed/RMD

ResMed has sold off heavily, once again, as fears that weight loss drugs (this latest, by Eli Lilly) will dent future demand for sleep apnoea.

RMD fell from ~$40sh to $25, where we established a position, promptly collapsed down to $21sh, before a good couple quarterly results pushed it back up above $32, at which point we exited.

The stock is down some 10% today, and, if it got down to those levels again (i.e. sub $25) we’d probably do the whole thing again.

These weight loss drugs are amazing, however, and that should be kept in mind. Probably one of the greatest technological innovations of the past decade, even if they don’t quite understand how all the bits and bobs (pharmacokinetics) work.

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