Is ResMed a Good Bet on Obesity?

So during there are plenty of these trends out there -- aging of the baby boomers, impact of emerging markets, and the ever popular cloud computing -- here's a trend that's nearly and dear to everyone's heart: obesity. Studies show that Americans are getting more and more overweight, with major concerns about the health consequences of this growing trend.

What does this mean?

So what does this mean?Often investors, myself truly included, tend to focus on the stock fundamentals when looking at a company. On the surface, this incidentally makes sense as I'm looking to buy a stock, right? Nevertheless to jump right into an analysis of P/E ratios, enterprise value to free cash flow, and growth rates previously taking a long hard look at the business of the company is not only not Foolish, it's silly. And I'm just too concerned with the narrow focus of this company to invest in it.

ResMed could continue to prosper as sleep apnea becomes more commonly diagnosed and treated, as management anticipates, making oodles of money for shareholders. Now I'd in other words not take the risk that a better mousetrap won't come along making this product, actually, obsolete. When all is said and done, who wants to wear a mask to sleep every night? If a new research or treatment came about, how loyal will ResMed's clients remain? During I won't say that ResMed will in the long run underperform the market, I'm not willing to buy it right however.