Fisher & Paykel Turning Chinese: Not at the Current Offer

The bid from 20% holder of Fisher & Paykel Appliances, Haier, [FPA.NZ] looks to be just the start to me.

It is a low-ball bid from an opportunistic bidder in my view and even after all it has been through over the last couple of years still values the company at around $850 million.

The company is Haier and it is large Chinese white ware manufacturer worth around 20 times more than this so the buyout for the company must be put into scale - they can afford more.

Shareholders need to beware that the purchase price is well below the companies intrinsic value and does not place any value on the future prospects of this company and even though I have slagged it in the past, it is worth more. FPA is now running at surplus again and looks set to pay divided once more.

If shareholders recently come to registry want to sell it the fair enough, but if just 10% of sharehoders say no the Haier will have to go spin.

Too many companies have been sold too cheap to overseas buyers and im afraid pakels is another one of those.

Lets not make this another one.


Fisher & Paykel Appliances @ Share Investor

Share Investor's 2012 Stock Picks 
Fisher & Paykel Appliances: Worth a second look?
Long Term View: Fisher & Paykel Appliances
Stock of the Week: Fisher & Paykel Appliances
Fisher & Paykel Appliances future looking bleak
Fisher & Paykel downgrade continues fine tradition
Fisher & Paykel Appliances looking fair value
Fisher & Paykel: A Tale of Two Companies
Fisher & Paykel Appliances: In a spin over nothing

Discuss FPA @ Share Investor Forum
Download FPA Company Reports

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The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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Fisher & Paykel Appliances: Worth a second look?

I have been a vocal critic of Fisher & Paykel Appliances Ltd [FPA.NZ] in the past and still have some doubts about its current management who ran the company into the ground over the last couple of years.

Having said that I do see an opportunity to make some short to medium term money here.

If we look at the one year FPA chart above we can see that the share price seems to have found a good support level in the 50 -65c range since October. It is currently trading at 1c above a near all-time low of 52 cents so fortune favours the brave but most of the surprising bad news has been brought out of the icky financial closet.

There could be further bad news from stagnant sales in this part of the world and a further drop in sales Europe and mainland America but any further bad news looks to have been factored into the current share price.

For the brave and risk loving, on further weakness.


Fisher & Paykel Appliances @ Share Investor

Long Term View: Fisher & Paykel Appliances
Stock of the Week: Fisher & Paykel Appliances
Fisher & Paykel Appliances future looking bleak
Fisher & Paykel downgrade continues fine tradition
Fisher & Paykel Appliances looking fair value
Fisher & Paykel: A Tale of Two Companies
Fisher & Paykel Appliances: In a spin over nothing

Discuss FPA @ Share Investor Forum

Download FPA Company Reports


Recommended Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

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




c Share Investor 2010

Long Term View: Fisher & Paykel Appliances

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Fisher & Paykel Appliances Ltd [FPA.NZ] had been very good to its shareholders in terms of returns since its forerunners NZX listing in 1979 - we will only be looking at the last 8 years of available data since FPA became a fully separate company from Fisher & Paykel Healthcare [FPH.NZ] and listed on November 16 2001 at $NZ2.25 (adjusted for a 4:1 FPA stock split in 2004). With $NZ 1.44 cents in net dividends (see chart above) paid and another 33% of that figure gained for those eligible for associated tax credits, a slightly more than 11% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 8 year available data gives an approximate annual net return of just over 1.37 %.

This is more than 10 times worse than the return from the average of all NZX indexes.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Fisher & Paykel Appliances @ Share Investor

Stock of the Week: Fisher & Paykel Appliances
Fisher & Paykel Appliances future looking bleak
Fisher & Paykel downgrade continues fine tradition
Fisher & Paykel Appliances looking fair value
Fisher & Paykel: A Tale of Two Companies
Fisher & Paykel Appliances: In a spin over nothing

Discuss FPA @ Share Investor Forum

Download FPA Company Reports

Recommended Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

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




c Share Investor 2010