Resmed, Cochlear: The lower dollar is making these stocks more attractive

The Australian dollar has dropped below 94 US cents, a 10% discount on its value only three months ago and its lowest point since October 2010.

Last week I noted that Australian economist Ross Garnaut said he wouldn’t be surprised if the Aussie dollar had a six or seven in front of it within months. For many importers and travel companies, this rings alarm bells. Last month, Flight Centre (ASX: FLT) sent out a pre-emptive message to shareholders saying that the lower dollar won’t have an effect on its sales.

However, as the dollar falls, Australians will be more conservative with overseas spending, but that doesn’t have to be a bad thing for investors. Exporters and companies that do most of their business in the Americas will be pleased with fall in the dollar.

Resmed (ASX: RMD) is a global company involved in the manufacturing, development and marketing of innovative medical products for the treatment and management of respiratory conditions. It currently does 55% of its business in the U.S and only 2.6% in Australia.

Cochlear (ASX: COH) is another Australian company with a firm focus on specialised medical products. As the world leader in manufacturing and distribution of implantable hearing devices, Cochlear stands to gain from the lower exchange rate. Its recent profit guidance has given investors a good excuse to make the move into this unique stock, especially as the reduced guidance was only a result of the market holding out for the next model of hearing aids. Currently, it has over 80% of its business in the US and Europe.

Foolish takeaway

Other big Australian companies that stand to gain from the drop include CSL (ASX: CSL) and Brambles (ASX: BXB), who do approximately 38% and 46% of their business in the US respectively. However, you may wish to look outside the S&P/ASX 20 (^ATLI) for increases in profit, as it seems the market is already expecting something big from these two.

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Motley Fool contributor Owen Raszkiewicz owns shares in Cochlear.

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