ResMed’s wider revenue stream will add to your 76% return

Article Excerpt

When a company moves into a new and exciting area, it can provide even more of a catalyst for strong investor returns. Here’s a stock using data it gathers to generate a new revenue stream and more. We think it will let you build on its 76% gain over the last year. RESMED INC. $176.62 (New York symbol RMD; TSINetwork Rating: Average) (800-424-0737; www.resmed.com; Shares outstanding: 144.6 million; Market cap: $25.5 billion; Dividend yield: 0.9%) is a buy. the company makes and sells CPAP (nasal continuous positive airway pressure) medical devices. They are used to treat patients with sleep apnea and more. With each new machine ResMed sells, it acquires a potential long-term replacement-parts customer: the tubing, masks and so on need replacement several times a year—and provide steady, recurring revenue. Meanwhile, the company’s devices increasingly collect collect data from users about their machine use and sleeping patterns, and the effect that the machines have on their health. It then gives users feedback that coaches them on how…

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