Hot Stocks Cochlear (COH)

Cochlear is a world leader in restoring hearing to profoundly hearing-impaired patients, currently occupying a 70% share of the world market for the profoundly hearing impaired (PHI) and selling its products in over 100 countries.

COH’s released its 2010 half-year results last month, beating the market’s expectations. Profit rose 8% from the year before, totalling $75.2 million for the half.

Earnings per share rose 7% to 134 cents (up from 125.5 the previous year), while COH boosted its dividend by 19% to 95 cents.

The company’s Nucleus 5 product is expected to be rolled out to other countries in the coming months, and this should continue to support strong sales growth.

New product launches are currently boosting Cochlear’s bottom line, and profits should be up by at least 15% in the 2009/10 financial year.

With product momentum continuing, we feel COH will keep its good run going.

Technical Analysis

Cochlear Stock Performance Graph

Cochlear Stock Performance Graph

COH has been rallying strongly since March, and trading nicely above an uptrend support line since April (not shown on chart).

More recently the stock has faced resistance around $68 – $70, and also struggled to form another higher low.

However, while the stock hasn’t really soared over the past few months, COH’s January high did manage to eclipse its previous peak, and its February low settled slightly higher than its previous trough.
So, the picture is still bullish, and against this backdrop COH broke to new 52-week highs yesterday, cracking above $70.

COH shares have rallied well in recent sessions, accompanied by strong volume, signalling plenty of buying interest.

The stock looks poised to post further gains following the recent share price breakout.