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Are we getting an opportunity now to buy ResMed?

The share price of ResMed (RMD) has shed almost 10 per cent since the start of August.  It’s now trading on a P/E of ~20x, compared to ~24x around the time of their fiscal year result. There are however some concerns in the market about an expected impact on gross margins from pricing pressure from its US customers. There was little gross margin growth in FY16, and this, along with new products/positive testing results seem to be the key catalysts for the stock – …

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Is SAI poised to trade higher from here?

Investors in SAI Global (SAI) were relieved after last week’s results to see earnings exceed previous guidance. The stock has fallen quite a way since private equity’s proposal two years ago saw the share price exceed $5. With the company undergoing a transformation and believing that the worst is behind them, do the charts tell us whether now is the right time to get involved and enjoy some significant upside? SAI seems to have formed a double low here on …

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Monadelphous breaking higher

For the last few years, we have avoided the mining services sector. Because of this cautiousness, we have managed to save our clients a lot of money as share prices plummeted. Despite the nice gains in the last 6 months, Monadelphous (MND) is still well down from its all time highs. Looking at the chart though, we have seen a trading opportunity develop over the last few days.     We are most comfortable when both fundamentals and technicals look …

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Time to take profits in James Hardie?

Strong US housing data this year has seen James Hardie (JHX) maintain its uptrend. However, I have identified some technical signals which indicate that it may be time to secure our profits. Some analysts have identified headwinds such as increasing competition and demand to taper back a bit in the US. These concerns may be creeping in when we look at the price action of JHX.     The first problem sign I noticed is the bearish engulfing pattern that …

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Trading Tip – Westfield Corp to push higher

Westfield’s shares have undergone a few iterations over the years, with Westfield Corporation now remaining a global retail property group. It has investments in the US and UK, and those two economies are showing signs of stability. This means that we should continue to see support for retail growth, which will in turn support the share price of Westfield Corporation. At first glance the share price appears to be going nowhere though, but it has actually been following a nice …

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