Respironics (RESP) is a company that makes it’s money while you sleep – manufacturing medical devices used to treat various sleeping disorders. The stock touched a 52-week high on Monday, and it’s balance sheet had one analyst at BMO Capital Markets crooning about its “tremendous financial flexibility for acquisitons, stock repurchases and dividend payments should it decide to do so.” Right now, RESP has five buys and no sells. John Miclot, CEO of Respironics joins the guys on the fast line to discuss why his company is the object of all this affection.
Miclot says his company owes its success to CPAP (Continuous Positive Airway Pressure), its main product which treats obstructive sleep apnea, a disease which affects over 20 million Americans. The CPAP product essentially works as a mask and device that patients wear when sleeping to help them breathe better. Miclot says his company is introducing a new series of products that effectively reduces the size of the mask, making it easier for people to sleep comfortably with it on. The size of the mask is a minimal price to pay for a good night’s sleep, Miclot says, and his company’s therapy gives patients immediate relief from breathing problems. He says the market is viewed at growing 15-20% and he notes that 85% of people who suffer from obstructive sleep apnea haven’t even been diagnosed yet. The guys are in agreement on this one: RESP is a good defensive play.
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On APR 12 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Strazzini Owns (SNDK), (NWS.A)
Macke Owns (SWY)
Najarian Owns (ARO), (AMLN), (BRCM), (CAT), (COST), (KSS), (MEDI), (PENN), (AAPL), (TLM), (EDS), (BSX)
For the record:
Strazzini Owned (SNDK), (BRCM) On 3/9/07