Wednesday, May 27, 2009
John Key's Socialist streak political weakness
Posted by Share Investor at 8:19 PM 0 comments
Labels: personal responsibility, socialism
Tuesday, May 26, 2009
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Lets take a quick look at today's profit announcement for Fisher & Paykel Healthcare Ltd [FPH.NZ]
Key Points:
1. Real revenue growth up by 10% to US$299.3 million.
2. Profit up over 70% and revenue up 28% is an excellent result- In New Zealand dollar terms.
3. A big contribution from a favourable exchange rate.
4. Nice contribution from the sleep apnea products.
5. Steady DIV of 7 cents - a DIV re-investment plan to be initiated.
6. Outlook positive for 2009-2010.
The stockmarket has reacted negatively to this result, marking shares down 20c at time of writing because profit guidance by management for the next year is lower than expected by analysts.
On first glance this might frighten the unwary FPH shareholder but if you have been watching the US/NZ dollar exchange rate you will know that this had favoured the company in a major way over the last year and as revenue is reported in kiwi dollars this has had the effect of boosting revenue higher than real revenue growth from increased sales.
This favourable boost to company revenue through exchange rate crosses is not going to continue over the coming year and may in fact negatively impact the bottom line, as it has done in the past.
These facts are already known by the market and there should be no surprise to anyone about the exchange rate factor and its effect on company profit. Shareholders shouldn't expect the same "windfall" profits next year.
All I can say is the analysts put the anal in their name -try looking outside the office next time you quote forward profit projections.
Of course the material sales revenue figures are the all important ones and must be the main stress in this profit report and that has increased 10% to US$299.3 million-mostly on the back of their sleep sector products.
Shareholders should take note that the company is still growing, and your focus needs to be on the bottom line health of the business and not on exchange rate fluctuations which will occur regardless of what the company does.
The company like the name, is in good health.
You can find the full Fisher & Paykel Healthcare FY 2009 profit announcement here .
Disclosure I own FPH shares in the Share Investor Portfolio
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Related Amazon Reading
The Business of Healthcare Innovation
Buy new: $36.00 / Used from: $22.50
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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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Buy The Intelligent Investor & more @ Fishpond.co.nz
c Share Investor 2009
Posted by Share Investor at 10:07 AM 0 comments
Labels: Fisher and Paykel Healthcare, Fisher and Paykel Healthcare 2009 FY profit
Monday, May 25, 2009
Stock of the Week: Fisher & Paykel Appliances Ltd
This is the beginning of a new a column. A regular outing, I will pick one stock that may have been in the news - good or bad-or one that simply takes my fancy and recommend that investors might like to take another look at it to see if it fits their investment profile.
The inaugural Stock of the Week pick is Fisher & Paykel Appliances [FPA.NZ]. Long given a good stiff verbal beating by my good self over many years the main reason why I am picking this stock for closer scrutiny is the ability for you short term investors out there for you to make a quick buck rather than the slow and sometimes painful ones that I make.
Yes, yes, yes you could have bought at NZ 37c a few weeks back but the company's future survival wasn't clear at that point.
The stock closed at 66c on Friday and is on a trading halt until this Wednesday 27 May.
It seems there is to be some material news out this Wednesday in regard to the success or otherwise of its capital raising process.
It seems likely that the news is going be that some kind of finance has been found to keep the company going, at least for the short to medium term, with a 200 million rights issue mooted by BusinessDay over the weekend, the main reason given by FPA management for putting a trading halt on today.
There is some life left in this beast yet, how much we cannot be too sure, but there is short to medium term money to be made if one gets in early on positive news after trading is lifted on Wednesday. The short-term money to be made will be on buying quickly on Wednesday and flicking shares off to those who want to participate in the rumoured capital raising (it could actually be a cornerstone shareholder instead of or as well as) or buying quickly and holding medium to longer term hoping that the company can trade its way out of its current financial, revenue and profit troubles.
It is worth a look at and I will be taking a cursory glance at it on the big day to see if I can gain any benefit from it, as I am not against a short term punt myself.
Good luck.
Stock of the Week Series
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
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Fisher & Paykel Appliances
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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 2009
Posted by Share Investor at 6:00 PM 0 comments
Labels: Fisher and Paykel Appliances, FPA, Stock of the Week, stock pick
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