Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James and Team, Is MM selling RMD with another sharp drop of the security in the US market on Friday? The complete reversal and more to the downside in the major indexes does not bode well and RMD did much worse in dropping precipitously from the open. Does MM think further sell-down of RMD is likely and is it justified? It would be great if you could consider this question for the morning report on Monday. Thank you. Adel
Hi Adel,
We didn’t sell RMD on Monday which in the very short term at least was an error. We outlined our reasoning in Tuesday Mornings Report.
However after falling towards $27 we have indeed elected to increase our position in RMD on Friday morning – Trading Alert – with the view that current margin issues can be overcome and the sell-off is overblown. UBS actually wrote a great note this week, discussing one of the other broader issues facing RMD, namely the rise of weight loss drugs, posing the question of whether or not this could have a big impact on sleep apnea treatments i.e. fewer overweight people = less sleeping issues.
At this stage, the concerns seems overinflated however if the funding situation changes, and greater reimbursements are offered, this could become more material.
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