RESP takes a big hit

tomjax · Post by **tomjax** » Thu Oct 26, 2006 8:14 am

Respironics (resp) took a big market opening hit this AM.

It was down about 14 pct at the bell and is now down about half that.

Not sure what is going on. Earnings up, performance good.

Looks like the RMD policy did not benefit them.

I am personally down about 1300.00 for the morning.
OUCH!!!

Guest · Post by **Guest** » Thu Oct 26, 2006 8:41 am

Next quarter is the first that Resmed's actions will be factored in the numbers. They are currently reporting on the three months ended September 30, 2006.

kteague · Post by **kteague** » Thu Oct 26, 2006 8:42 am

Sure hope Respironics doesn't attempt to address the drop by changing their online sales policy. Hmmmm... Then a stockholder who is also a consumer would have to factor increased product costs into their financial equation. At first I was thinking one would be conflicted, but the equipment costs would probably be negligible compared to potential stock losses.

Could be a little soon to see the effect of those buyers who are jumping ship from the competitor - maybe they haven't yet had a need to purchase new equipment.

Sorry you took a hit.

Kathy

sleepyinsunnyvale · Post by **sleepyinsunnyvale** » Thu Oct 26, 2006 8:42 am

No matter how well they seemed to do on a revenue and profit basis in the quarter my guess is that they disappointed the industry analysts on a earnings per share basis.
You NEVER want to do that

Wulfman · Post by **Wulfman** » Thu Oct 26, 2006 10:06 am

tomjax wrote:Respironics (resp) took a big market opening hit this AM.

It was down about 14 pct at the bell and is now down about half that.

Not sure what is going on. Earnings up, performance good.

Looks like the RMD policy did not benefit them.

I am personally down about 1300.00 for the morning.
OUCH!!!

Tom,

It's only down a little less than 7% as I write this. What's interesting is to look at the charts (I use Yahoo's stock symbol lookup) for both RMD and RESP for about 6 months or a year. ResMad took a much bigger hit in August and they're still a long way from gaining that back. Respironics is still going up.....with a few little dips now and then.
Looking out over about a year's period of time, they've both zig-zagged up and down.

Den

sidesleeper · Post by **sidesleeper** » Thu Oct 26, 2006 2:25 pm

Huge institutionsl dumping today . almost 5 million shares. that is a hugh bail out whan normal trading is only 350,000 shares.

dsm-guest · Post by **dsm-guest** » Thu Oct 26, 2006 3:39 pm

This almost seems to be a repeat of what happened to Resmed ?.

But when institutions dump stock it is usually because they know something we don't.

DSM

dsm · Post by **dsm** » Thu Oct 26, 2006 3:54 pm

http://finance.yahoo.com/q/bc?t=1y&s=RE ... &q=l&c=rmd

Looking at this chart of today's trading, I am not sure I'd call it a big hit ?
Looks more like regular up and down trading.

Respironics are still and will remain a good blue chip stock in the healthcare industry.

The one pattern I see though is that the resp to rmd relationship in stock price has now returned back to what it was a couple of months back.

DSM

# changed link to a comaprison one

# Wulfman (Den) - just realised you had already said the above in an earlier post - appologies for repeating it - The chart shown in my link does make an interesting comparison. Resmed are the ones who suffered the really 'big hit' but even they are slowly recovering.

D

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sidesleeper · Post by **sidesleeper** » Fri Oct 27, 2006 1:29 pm

By Althea Chang
TheStreet.com Staff Reporter
10/26/2006 12:56 PM EDT
Click here for more stories by Althea Chang

Respironics (RESP - commentary - Cramer's Take - Rating) saw its shares fall after third-quarter revenue disappointed investors.
Sales for the quarter were $266.6 million, up 11% from the year-ago period. However, analysts were expecting sales of $274.7 million. Sleep-therapy products accounted for $153.9 million of the total, a 17% increase.

Shares of Respironics fell 6.6% to $35.97.

Respironics earned $22.1 million, or 30 cents a share, including 3 cents of stock-compensation expenses. Profits were in line with estimates and up from 25 cents last year.

Domestic revenue was up 9% to $181.6 million during the quarter, and international revenue reached $85 million, up 15%.

dsm · Post by **dsm** » Sat Oct 28, 2006 5:16 am

Verrry interesting Tomjax. After Friday's trading your comment re a 'big hit' looks right in terms of the thurs/fri combined trading.

DSM

Mike2000 · Post by **Mike2000** » Mon Nov 13, 2006 5:54 pm

Looks like Resmeds policy has done them no harm at all with above average growth inside and outside the US.

Resp Growth in the US = 9% compared to Resmeds 34% and the industry average of 20%

Resp Growth internationally = 15% compared to Resmeds 24% and the industry average of 15%

Those of you who talked about buying shares should have seen a small gain.

neversleeps · Post by **neversleeps** » Mon Nov 13, 2006 8:04 pm

Resmed's policy (increasing the cost patients must pay for products sold via the internet by over 40%) has been in effect for about 40 days now. What time frame was used for the growth figures you say indicate this policy has done them no harm?

Mike2000 wrote:Looks like Resmeds policy has done them no harm at all with above average growth inside and outside the US.

I can't speak for anyone else, but my concern has never been for how this policy might harm Resmed! The concern is for the patients who are now no longer able to afford to buy Resmed products online. The concern is for preserving CPAP internet retailing.

The good news is: those same patients who can no longer afford to buy Resmed's products online can still buy Respironics products for substantially less. So, since we're comparing the two manufacturers, I say, three cheers for Respironics!!!

P.S. I don't work for either company.

RESP takes a big hit

RESP takes a big hit

Respironics stock report

Re: RESP takes a big hit