H4 Chart AnalysisHi Traders,
Next Week Gold Will Move From Its Strong Support 2148 to 2155 Area. If Gold will break its Strong Support Area Then Gold will Go Down 2140 to 2116 to 2088 may its Area Retest. IF Gold break Its Trend Line H4 Chart Then Go up. Market will move its First Two Days Between Range Or Follow Its H4 Trend due to FOMC on Wednesday.
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MASI
Masimo (NASDAQ:MASI) Stock's EvaluationMasimo (NASDAQ:MASI) has had a rough three months with its share price down 29%. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
Why Is ROE Important For Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
Masimo's Earnings Growth And 8.9% ROE
At first glance, Masimo's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 9.1%. Having said that, Masimo's net income growth over the past five years is more or less flat. Remember, the company's ROE is not particularly great to begin with. Hence, this provides some context to the flat earnings growth seen by the company.
Next, on comparing with the industry net income growth, we found that the industry grew its earnings by 8.1% over the last few years.
Is Masimo Making Efficient Use Of Its Profits?
Masimo doesn't pay any dividend, meaning that potentially all of its profits are being reinvested in the business. However, this doesn't explain why the company hasn't seen any growth. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
Summary
In total, am ambivalent about Masimo's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future
Masimo Corp (NASDAQ: $MASI) In Store For A Lovely Bounce ❤️Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. The company offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. The company offers coronavirus-2019 response and telehealth solutions; connectivity devices; and nasal high flow ventilation and neuromodulation solutions. The company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, physician offices, long term care facilities, veterinarians, and consumers; and non-medical/consumer products through e-commerce site, masimopersonalhealth.com. Incorporated in 1989, the company is headquartered in Irvine, California.
MASI- Bear flag formation short from $85.33 to $77.23MASI forming a possible bear flag formation. It declined with huge volume. There was strong moneyflow divergence & it dropped sharp. We think MASI is a good short setup.
* Trade Criteria *
Date First Found- May 8, 2017
Pattern/Why- Possible bear flag formation
Entry Target Criteria- Break of $85.33
Exit Target Criteria- $77.23
Stop Loss Criteria- $90.23
Please check back for Trade updates. (Note: Trade update is little delayed here.)