COH - Cochlear Limited

[McCoy Pauley]

Looks like COH has the potential to fall through the bottom of the rising channel (see chart attached).

As a holder, would like to see the chart reverse course next week, but IMO, the sellers are in charge at the moment.

First half results should be emerging in about six weeks. This will give everyone an indication of the bottom line damage done by the recall.

 

[notting]

Hope so, im going to go sick on it. Started filling up cautiously.already.
I think its just people jumping off defensive into more bullish things. It will run hard and catch up quick no matter what the market does. Lots of grandpa's coming down the line!

 

[McCoy Pauley]

It appears as though COH's share price is bouncing off the bottom of the rising channel in the chart I posted last week.

Still a long way from closing that massive gap that appeared in the chart thanks to the recall, though.

 

[McCoy Pauley]

COH released its first half results this morning and an update on the product recall.

Before the costs of the recall, COH's revenue increased on the comparable period a year ago, but its EBIT fell 10% and NPAT before the recall fell 8%. COH announced that the recall costs so far were $100 million after tax, causing a net loss for the half of $20.4 million.

COH announced an increased dividend for the first half (previously foreshadowed) to $1.20 per share.

It advised that the failure rate for its Nucleus CI500 series implant as at 31 January 2012 was 2.4% with newly reported device failures falling every month since 31 October 2011. COH has not found any additional cause for the failure of the implants since its announcement in December 2011.

COH never provides guidance on future performance, but I suspect that the worst of the costs incurred through the product recall is now behind COH and it shouldn't affect the second half performance as badly as it affected the first half performance.

 

[McLovin]

Before the costs of the recall, COH's revenue increased on the comparable period a year ago, but its EBIT fell 10% and NPAT before the recall fell 8%. COH announced that the recall costs so far were $100 million after tax, causing a net loss for the half of $20.4 million.

The lower EBIT and NPAT was because the recall constrained supply. It looks as though they are now in a position to resume business as usual.

 

[robusta]

Looking at the price action it seems the short sellers are having fun with COH if the price falls further I might buy some

 

[notting]

Bean chewing on it.
Great company and whith the Reserve bank FINALLY waking up to the fact that "Gee the au$ is a bit high isn't it?" May help a bit of downward pressure on au$ and assist things like COH and QBE!

 

[Trembling Hand]

Looking at the price action it seems the short sellers are having fun with COH if the price falls further I might buy some

LOL you mean the short sellers that have sold 0.1 % of issued shares?

 

[skc]

LOL you mean the short sellers that have sold 0.1 % of issued shares?View attachment 46356

That's the daily shorts. Gross short position on COH is ~10% which puts it in the top 10 for ASX.

http://www.thebull.com.au/articles/a/22191-top-10-shorted-stocks.html

You know value investors are always thankful to the shorters until said investors run out of money to average down... then they curse them...

 

[Trembling Hand]

That's the daily shorts. Gross short position on COH is ~10% which puts it in the top 10 for ASX.

http://www.thebull.com.au/articles/a/22191-top-10-shorted-stocks.html

Where does that data come from?

 

[poverty]

Bean chewing on it.
Great company and whith the Reserve bank FINALLY waking up to the fact that "Gee the au$ is a bit high isn't it?" May help a bit of downward pressure on au$ and assist things like COH and QBE!

You're talking like the RBA just cut rates, but they didn't?

 

[skc]

Where does that data come from?

http://asic.gov.au/asic/asic.nsf/byheadline/Short+position+reports+table?openDocument

 

[Trembling Hand]

http://asic.gov.au/asic/asic.nsf/byheadline/Short+position+reports+table?openDocument

Well there ya go. Ta.

 

[blue0810]

http://asic.gov.au/asic/asic.nsf/byheadline/Short+position+reports+table?openDocument

skc >Thanks for the link , i was looking the daily shorts instead Gross short position as your post.

 

[robusta]

You know value investors are always thankful to the shorters until said investors run out of money to average down... then they curse them...

True it is difficult to pick the bottom price. In this case if i picked up some more I would be averaging up if that is such a thing as I picked up my first parcel @ $45.85 a few months ago (sometimes you get lucky)

Anyhow it is probably all academic as I would like to buy under $55.00

 

[notting]

Just fell through 10 day support level with a bit of attitude.
It's a defensive, bit odd.

 

[Knobby22]

Just fell through 10 day support level with a bit of attitude.
It's a defensive, bit odd.

Maybe investors are thinking the $A is going back up. Also it rose pretty quick, time for a correction. Would lover to buy some if they fell enough.

 

[McCoy Pauley]

COH's share price seems to be hitting somewhat of a resistance level at about $67/share. The upward trend has died off, but the pull-backs are growing shallower on the chart. We might be poised to see a break-out, particularly around the date the annual results are released in August.

 

[skc]

COH's share price seems to be hitting somewhat of a resistance level at about $67/share. The upward trend has died off, but the pull-backs are growing shallower on the chart. We might be poised to see a break-out, particularly around the date the annual results are released in August.

Plenty of broker downgrade to sell and all that which is surprising for COH, and probably means a breakout is imminent....

 

[herzy]

Plenty of broker downgrade to sell and all that which is surprising for COH, and probably means a breakout is imminent....

please forgive my ignorance with trading, but why do broker 'sell' recommendations indicate a breakout?