Saturday, September 4, 2010

Mondrian Investment Partners take stake in Fisher & Paykel Healthcare

Mondrian Investment Partners yesterday become a substantial shareholder in Fisher & Paykel Healthcare Ltd [FPH.NZX].

The fund manager disclosed they took a 5.01 percent stake after purchasing 483,566 shares on September 1.

This is the first shareholding the private investment company has taken in FPH and they give the following reasons for their investment choices:

"We invest in stocks where rigorous discounted cash flow analysis isolates value in terms of the long-term flow of dividends. Dividend yield and future real growth play a central role in our decision making process and over time the dividend component will be a meaningful portion of expected total return."

Hard to know who the seller was but at an educated guess it was probably The Capital Group Companies, Inc who had a 4.92% stake in February 2010 and at that disclosure had sold an almost 1% stake since they disclosed their 5.08% holding in June 2009.

FPH has had a number of stakeholders in the 5% range over the last few years but it seems even though they have stated at time of purchase that their investments are long term they have exited after a few years.

This company is a great long-term investment, one of the best growth propositions on the NZX, so any company taking a substantial holding needs to be patient when investing. They are not going to make big term gains in a few years.

The big gains will be seen 7-10 years.


Disclosure I own FPH shares in the Share Investor Portfolio

Fisher & Paykel Healthcare @ Share Investor

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

From Fishpond.co.nz

Bird on a Wire: The Inside Story from a Straight Talking CEO

Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz

Fishpond


c Share Investor 2010