Monday, June 16, 2008

Drinking and Trading

Well, it could be the red wine I had at lunch or the absolute unbridled enthusiasm that I have for the New Zealand economy and our stockmarket, (naaaah it must be the Cab Sav)I just purchased, from my dividend allocation this last quarter, 3000 Fisher & Paykel Healthcare Ltd [FPH.NZX] shares at $2.35 each.

I am a very happy camper about my new addition and this more than doubles my current holding in the company to 5000 shares.

My 2000 allocation was bought at NZ$3.72 per share and cost approx $3.50 when you include dividends and imputation credits.

The obvious reasons to buy was the current weakness in the stock price, the increased revenue of the company and the downwards trajectory of the New Zealand dollar. It hasn't had a good year profit wise but recent results are not materially important because the profit drop is due to the weaker US dollar, in which much of the company's business is done. A stronger US dollar will take care of that.

I also have an order in for 2000 more shares of Michael Hill International Ltd [MHI.NZX] or which 354 have traded at .82 c each.

It is unbelievable how low the P/E of this stock and others is/are. At just over 12 for MHI it clearly represents great value for investors considering it is trading off its highs only last year of over NZ$1.20 and they announced a record profit for this last period to Dec 31 2007.

As I have said manifold times over the years, when there is a sale it is worth buying what you like when it is cheaper. Investors would do well to grab their favourite companies during this downturn.

I am still on the prowl for Hallenstein Glasson Holdings Ltd [HLG.NZX] but think it still has further to fall given the tight retail conditions at present and the fact that I have exhausted my dividend cash.

The Share Investor Portfolio is still just in positive territory and currently up by 1.5% net overall. Not a good look when you consider the bulk of the portfolio is around 6 years old but hey considering the rorting the market has been getting it has done well and it will recover given time and more favourable economic conditions.

*It ain't advisable to trade shares after drinking half a bottle of good red. I miscalculated the sum of money I needed in my CMA account . A rider to that of course is if you are used to drinking that much and making financial transactions then go for it. What can I say, I'm a cheap drunk!

Fisher & Paykel Healthcare @ Share Investor

Share Investor's 2011 Stock Picks
Stock of the Week: Fisher & Paykel Healthcare Ltd
Fisher & Paykel Healthcare & the US Dollar
Mondrian Investment Partners take stake in Fisher & Paykel Healthcare
Fisher & Paykel Healthcare: 2010 Full Year Profit rests on Foreign exchange movement
Long Term View: Fisher & Paykel Healthcare
Stock of the Week: Fisher & Paykel Healthcare
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Schroder Investment Management takes big Fisher & Paykel Healthcare stake
Long VS Short: Fisher & Paykel Healthcare
Big Fisher & Paykel Healthcare trades a curious tale
Why did you buy that stock? [Fisher & Paykel Healthcare]
Drinking and Trading
Share Investor's 2008 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance

Discuss FPH @ Share Investor Forum
Download FPH Company Reports


Recommended Fishpond Reading

Crisis: One Central Bank Governor and the Global Financial Collapse

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond


c Share Investor 2008