Tuesday, January 31, 2012

Share Price Alert: Fisher & Paykel Healthcare Ltd 2

Fisher & Paykel Healthcare Ltd [FPH.NZX] shares have come back onto my radar again as they closed at a price yesterday not seen since September 2011, $2.18, (see 1 year FPH chart above) and before that not seen since mid 2008. This weakness in share price has nothing to do with the performance of the company - it has record revenues - but everything to do with the weak US dollar. The aforementioned weakness the two previous times in the last six years (see 6 year FPH chart below) was also because of this currency fluctuation.

The share price was up by 5c yesterday on a massive turnover of 15 million shares as Mondrian Investment Partners Limited sold nearly 10 million shares and now has ceased to own more than 5% of FPH. Mondrian has been a substantial FPH holder (over 5% holding) since September 2010 and on the share register for longer. The company still own around 25 million shares but look like they have lost substantially on yesterdays selldown.

It looks like they are betting that the US dollar will weaken and the share price may fall further so they can buy back cheaper but there has been good support at these levels before and as a current FPH shareholder I am putting in a buy today for at least 15,000 shares.

I am guessing that ACC or some other Government related saver scheme would have taken the Mondrian stake.

At these share price levels the stock is returning 8% gross and with imputation credits you are getting twice as much than a term deposit on a quality stock that has the potential to increase its capital value substantially when the currency fluctuation goes in the company's favour.

Be patient but not for too long at these levels.

Disc I own FPH shares in the Share Investor Portfolio

Share Price Alert Series

Contact Energy Ltd 6
Fletcher Building Ltd 5
Auckland International Airport Ltd
Kathmandu Holdings Ltd 2
Mainfreight Ltd 3
Fisher & Paykel Healthcare Ltd
Fletcher Building Ltd 4
Fletcher Building Ltd 3
Port of Tauranga Ltd 2
Contact Energy Ltd 5
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The Warehouse Group Ltd 2
Contact Energy Ltd 3
Contact Energy Ltd 2
Xero Ltd 2
Pumpkin Patch Ltd 4
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Telecom New Zealand Ltd 4
Telecom New Zealand Ltd 3
Port of Tauranga Ltd
Freightways Ltd 3
Goodman Fielder Ltd 2
Freightways Ltd 2
Telecom New Zealand Ltd 2
Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd 2
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd


Fisher & Paykel Healthcare @ Share Investor

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Discuss FPH @ Share Investor Forum
Download FPH Company Reports

Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions)Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) by Benjamin Graham
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c Share Investor 2012