Ann: Voluntary Suspension, page-29

The fundies are talking up Resmed. Are you serious.

It’s 28 thousand million market cap. Close to all time high. Still 50x up from all time lows. I’d be selling and taking the gains.

1. I know it’s 800m revenue, but that just makes dramatic growth hard. It’s easier to grow revenue from a 2m base like OSP

2. Revenue to market cap of OSP is only about 2:1. For Resmed it is around 40:1. Then you have to take in capacity for growth. If Resmed can 800m revenue, why can’t OSP. In a long term time frame, anything is possible.

3. Like for like, 2m revenue is a lot closer to 800m revenue than 5m market cap is to 28 thousand million market cap. The stock with the lower revenue and market cap also has way more potential and probability for extreme growth in both company size and company valuation.

5. if the human population is 1000. And only 2 people are using OSP products, but 800 are using Resmed. The potential for growth of Resmed is 25%. And that requires it taking 100% of the market. For OSP, if demand increase 1000%, it is only serving 20 people or only 2% of the market.

Get rid of the management team!

Investment 101