Sell Alert
ResMed (RMD)
from Cabot Benjamin Graham Value Letter, recommended around $32 in the June 7, 2012 Daily Alert and Investment Digest issue 721.
ResMed exceeded its Minimum Sell Price of 53.42 today. ResMed was first recommended in the Modern Value Model in May 2009 at 37.17 and has gained a remarkable 187.9% during the past four years compared to a gain of 89.0% for the Standard & Poor’s 500 Index.
ResMed reported solid second-quarter results, but the stock’s current 24.4 price-to-earnings ratio is noticeably higher than its 10-year average P/E of 20.6. I have learned that selling stocks when they reach their Min Sell Prices delivers the best results.
I advise selling your RMD shares now.
J. Royden Ward, Cabot Benjamin Graham Value Investor, www.cabot.net, 978-745-5532, October 4, 2013
In addition, Cabot Benjamin Graham Value Investor Analyst Roy Ward recommends selling Mens Wearhouse (MW), recommended in Investment Digest issue 730 at $34. Now trading around $45, the stock no longer qualifies for Ward’s list of “Top 275 Value Stocks.”