Why Cochlear Shares Popped Today

What happened to the Cochlear share price?

Shares of Cochlear Ltd [ASX:COH] gained more than 14% on Thursday, rebounding after a poor start to February.

Why did Cochlear shares do this?

Cochlear has had a good run since mid-2013 after the share price had fallen from a near record high. But today’s gain has helped to push the stock to a new record and break through the $100 barrier.

The share price gained after the company upgraded its profit forecast, and increased the interim dividend.

What now for Cochlear Ltd?

Cochlear has been labelled as a high growth, high risk, and volatile company, due to the nature of its business in the medical devices sector.

But with strong revenue and profit growth, plus an increase to the dividend, investors could start to look at the stock differently.

However, that won’t stop it from being a high risk proposition. Just as a positive earnings surprise can send the stock soaring, if the company disappoints in the future, even by not growing as quickly as some investors hope, the stock price could quickly turn in the opposite direction

Cheers,
Kris


Kris is never one to pull punches when discussing market developments and economic events that can affect your wealth. He’ll take anyone to task — banks, governments, big business — if he thinks they’re trying to pull a fast one with your money. Kris is also the editor of Microcap Trader — where he reveals the best opportunities he’s discovered in the markets. If you’d like to more about Kris’ financial world view and investing philosophy then join him on Google+. It's where he shares investment insight, commentary and ideas that he can't always fit into his regular Money Morning essays.

Kris Sayce is the Publisher and Investment Director of Australia’s biggest circulation daily financial email, Money Morning Australia. Kris is a fully accredited advisor in shares, options, warrants and foreign-exchange investments. Kris has close to twenty years’ experience in analysing stocks. He began his career in the biggest wasp’s nest in the financial world — the city of London — as a finance broker back in 1995.
It’s there where he got his ‘baptism of fire’ into the financial markets, specialising in small-cap stock analysis on London’s Alternative Investment Market. This covered everything from Kazakhstani gold miners to toy train companies.After moving to Australia, Kris spent several years at a leading Australian wealth-management company. However he began to realise the finance and brokerage industry was more interested in lining its own pockets with fat fees, commissions and perks — rather than genuinely helping out the private investors they were supposed to be ‘working’ for. So in 2005 Kris started writing for Port Phillip Publishing — a company which was more attuned to his investment outlook. Initially he began writing for the Daily Reckoning Australia — but eventually, took over Money Morning. It’s now read by over 55,000 subscribers each day. Kris will take anyone to task — banks, governments, big business — if he thinks they’re trying to pull a fast one with your money! Whether you agree with him or not, you’ll find his common-sense, thought-provoking arguments well worth a read.


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