Who Wins? CPAP Websites or Resmed?

[Respironics Shareholder]

It is established by Resmed's communications to the public that they are trying to control an established cpap internet retailing market.

Will Respironics follow Resmed's lead? Why would a company with little market share (PB, F&P, Devilbiss, Invacare, Hoffman) support a company with large market share? If Resmed gets control of the internet retailers of cpap, won't new players move into that distribution channel and take advantage of the lack of real Resmed competition? What happens to Resmed if one of their major competitors does not go along with their minimum prices? What if the competition say yes to minimum pricings but sets them lower than Resmed?

Won't competitors who undercut Resmed internet pricing gain strength at Resmed expense? How can Resmed compete if they choose to price above the fair market? Won't there always be plenty of websites selling equipment at competitive prices?

Will the cpap internet sites continue to take market share from the storefronts? If so, isn't Resmed shutting themselves off from the fastest growing distribution channel? Is Resmed worried that patients may be very upset with Resmed's actions?

Where is the long term payoff for Resmed shareholders? Did some of the long internet discussion Resmed made at their 8/17 earnings talk to Wallstreet scare investors into a 9% stock price drop the following day? Seems to be a pretty high price for shareholders to pay. Can investors understand and deal with the above questions? Are investors thinking that Resmed must be in some trouble if management finds it necessary to take on the Internet Retailers? Why is Resmed going down this road? There is so much that can wrong. Is their management making the right move?

[Paul B]

No, Resmed is not making the right move, and I think they will eventually figure this out.

[Guest]

you must be a newbie investor, nothing unusual about their stock dropping the next day after a earnings report, that happens most of the time no matter how good the report is because the whores on wallstreet don't think they can sustain it in the next quarter.

just like the price of gasoline futures being driven up by those same whores every time there is a storm or hiccup which doesn't even have to impact supply. the price of those futures drives up the local price sometimes overnight and you know damn well they didn't take a delivery.

so to answer your question, if you are an investor in either of these companies and responsible for the price increases we have to endure for your gain, I hope both their stock goes in the toilet and you guys loose your royal ass.

[dsm]

It is established by Resmed's communications to the public that they are trying to control an established cpap internet retailing market.

Will Respironics follow Resmed's lead? Why would a company with little market share (PB, F&P, Devilbiss, Invacare, Hoffman) support a company with large market share? If Resmed gets control of the internet retailers of cpap, won't new players move into that distribution channel and take advantage of the lack of real Resmed competition? What happens to Resmed if one of their major competitors does not go along with their minimum prices? What if the competition say yes to minimum pricings but sets them lower than Resmed?

Won't competitors who undercut Resmed internet pricing gain strength at Resmed expense? How can Resmed compete if they choose to price above the fair market? Won't there always be plenty of websites selling equipment at competitive prices?

Will the cpap internet sites continue to take market share from the storefronts? If so, isn't Resmed shutting themselves off from the fastest growing distribution channel? Is Resmed worried that patients may be very upset with Resmed's actions?

Where is the long term payoff for Resmed shareholders? Did some of the long internet discussion Resmed made at their 8/17 earnings talk to Wallstreet scare investors into a 9% stock price drop the following day? Seems to be a pretty high price for shareholders to pay. Can investors understand and deal with the above questions? Are investors thinking that Resmed must be in some trouble if management finds it necessary to take on the Internet Retailers? Why is Resmed going down this road? There is so much that can wrong. Is their management making the right move?

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CPAPopedia Keywords Contained In This Post (Click For Definition): respironics, resmed, CPAP

These are 2 links that parley up Resmed as a successful company in the medical equipment market.

http://www.fool.com/news/commentary/200 ... y&bounce=y

http://yahoo.reuters.com/news/articlehy ... ews&rpc=44

Both Respironics and Resmed are blue chip stocks in this market. Perhaps Resmed is edging a lead due to some product innovations just at the moment.

Respironics and Resmed are 'keeping each other honest' in one sense. Neither has kept ahead of the other for long. But this is a largely untapped marked (the market for respiratory aids to aging baby-boomers & younger generations whose diets are changing their shape & health needs).


DSM

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CPAPopedia Keywords Contained In This Post (Click For Definition): respironics, resmed, CPAP

[Wulfman]

Did some of the long internet discussion Resmed made at their 8/17 earnings talk to Wallstreet scare investors into a 9% stock price drop the following day?

My father, who was a stockbroker for many years, told me the old investing philosophy......"Sell on good news and buy on bad news".

Probably just some "profit taking". A couple of mutual funds may have wanted to improve their cash position or make up for some stocks that weren't performing.

We'll just have to see what happens with their "We can't make up our mind about Internet sellers" IN-decision.

Den

[billbolton]

Won't competitors who undercut Resmed internet pricing gain strength at Resmed expense?

That depends on what "issue" has driven Resmed to make the particular busines decision that have taken.

If they have identified some aspect of the market which indicates that their move was essential (say for instance, the possibility of significant litigation exposure regarding the use of their equipment by self prescribing users, or whatever) and their competitors don't anticipate the problem and get caught by it when it arises, giving away market share in the "Internet" market may in fact be a smart move!

Since no one but Resmed really knows why they have made their particular business decision at this time, it will be a matter of "time will tell".

Having been lectured to by some of the Resmed business managers when I was doing my MBA (their Head Office is a block away from Macquarie University), and long before I became a customer, its certainly my opinion they don't make business decisions lightly and there is some specific and well founded reason behind their decision.

Cheers,

Bill

[JCraig]

I'm sure their business reason is brick and mortars DMEs whining about losing market share and threatening to stop selling their products if they don't "do something about it".

[fstanmyre]

Like many companies, judging from their last quartly revenue and earnings results, their management is doing just great. Like many companies too much focus on short term results can ruin the company. I suspect this may well be the case.

[billbolton]

Like many companies too much focus on short term results can ruin the company. I suspect this may well be the case.

Resmed has been in the CPAP business for a long time. Their track record to date is that they in fact dont have "too much focus on short term results".

Again, time will tell.

Cheers,

Bill

[Guest]

um last time I checked, people buy CPAP equipment at a DME where they should buy it.

Resmed did the right thing.

[Paul B]

Guest,

Only the first time or only if they don't know any better.

[Goofproof]

Guest, I get mine at Hardware Supply, it's in the Plumbing Section. Jim

[Respironics Shareholder]

Resmed stock is down 14% since their 8/17 meeting. Is their earnings and revenue growth the only reason for this plunge? Did their statements indicating that they wanted to protect their traditional dealers reimbursement from the internet scare off investors? I seriously doubt that can be done. It certainly makes me uncertain who wins, traditional or Internet in the long run. The Internet must be growing in influence to command so much attention from Resmed. Is Resmed betting on the wrong horse?

[Artwood]

If Resmed had any sense don't you think they would give a hoot what people think at CPAP forums--they'e the ones that buy 2d and third and fourth CPAP machines.

Do you think the automobile dealers don't care about people buying 2d and third and fourth cars?

After DME people hear from the CPAP talkers a million times how bad Resmed is--do you think thay'll enthusiastically recommend Resmed?

All the other manufacturers are celebrating!

Look this is the 21st century and the only way Resmed could lock up the market to only DMEs is if they got all the other companies to go along with them.

Look if Ned Lamont can win because of bloggers--don't tell me that Resmed can't lose because of cpap talkers!

The difference though is people may or may not agree with Joe Lieberman but they think he means well.

Even people that have liked Resmed products in the past know that they DON'T mean well!

The only way to fight Remed's financial model is to NOT buy Resmed--complain to your DME--tell your sleep doctor and all other people on CPAP to not BUY Resmed and tell everyone not to buy their stock!

Also keep trashing Resmed here until the end of time and create a PR nightmare for them!

I am not an enemy of Resmed or thier products--I am an enemy of anyone in the healthcare industry that wants to create artificial closed markets that do nothing more than drive up the cost of healthcare and healthcare products!

This ISN'T SOCIALIZED medicine--it's letting the market work which is what most Republicans would be for and it is for lower prices which most Democrats would be for.

Everyone should be against Resmed!

It is the MORAL thing to do!

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CPAPopedia Keywords Contained In This Post (Click For Definition): resmed, CPAP, DME

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CPAPopedia Keywords Contained In This Post (Click For Definition): resmed, CPAP, DME

[JCraig]

Resmed is trying to undermine the free market system. F--- that, and f--- them. Seriously. Who the h--- do they think they are anyway?