Monday, July 20, 2009

Stock of the Week: Fisher & Paykel Healthcare




In this Stock of the Week I am going to look at Fisher & Paykel Healthcare [FPH.NZ] a long term favourite of mine.

While the stock has been cheaper over the last year (see chart above) and it has been close to a high of 5 bucks over the last 2, it is still more than 10% off its recent highs and that is my overriding reason for including it in this series.

That and the following important positive points:

1. The company has an enviable history of good revenue growth and profit

2. Looking into the future, its cutting edge technology and high R & D spending make for continuation of point number one.

3. Profit and sales have been recession-proof in the past and that is evidenced in their last profit result.

Even though the stock price is just over 10% off a 6 month high of NZ$3.46, it has found a comfortable niche in share price between $2.80 and $3.20 for the last year, so there is room in that 40c range for short termers to trade and long termers to pick up more shares if the stock moves to the bottom of that range.

I managed to add 3000 more FPH to the Share Investor Portfolio on June 16 2008 for $2.35.

Please be aware though that the stock price is particularly sensitive to currency fluctuations, with any upwards pressure on the Kiwi dollar having a negative impact on share price and vice versa. If the NZ dollar trades out of the 60c range in either direction then you are likely to find opportunities from either side of the share price equation.

It is a quality stock with something for everyone.

Good luck!


Disclosure I have FPH shares in the Share Investor Portfolio


Stock of the Week Series

Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances


Fisher & Paykel Healthcare @ Share Investor

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 Fisher & Paykel Healthcare @ Share Investor Forum

Related Amazon Reading

The Business of Healthcare Innovation
The Business of Healthcare Innovation
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c Share Investor 2009