Overall market down and most high P/E stocks taking a hit. RMD...

Overall market down and most high P/E stocks taking a hit. RMD had come up sharply over the last few years. No point looking at asx price because of currency fluctuations. Wouldnt be surprised to see it go down further nor will I be surprised to see it go up to new highs. If US stock markets keep going down, RMD will get dragged with it as has been seen so far. 

Provided growth forecast of RMD (and fundamentals) and global economy stays the same, 80 would be a solid buy. 70 would mean I would be happy to sell other stocks and buy into RMD and make it 50% of portfolio. All values in USD. The next stop below that would be $50 at which price one can safely put all their eggs in the one basked imo. Chances of 50 are near 0. Even in the GFC, RMD share price did not drop significantly.

I highly doubt its going to get that low. Who knows, if they lose a patent case or two and have to pay up Australia the tax it might come down to the 80s.

I have come to realize there is a far better relationship between dividend yield and growth rate as opposed to P/E to growth rate. With dividend yield under 1%, it is still more 'expensive' than CSL with its dividend yield of 1.3% at a share price of 178 AUD. This implies a growth rate between 15 and 18 percent approximately. (CSL company guidance growth rate is 10 to 14%).

Best approach is to not sell (i.e. dont pick the top) but keep buying small bits as price drops.