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

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Long Term View: Infratil Ltd

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.

Infratil Ltd [IFT.NZX] has been a stellar investment for shareholders since its September 1994 listing at an adjusted 50c per share . With $1.02c * in net dividends, 30% more in tax credits (see NZX chart above) and bonus issues; 7:6 bonus issue in 1996 and a 4:3 bonus issue in 1995, gives IFT a 700% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 16 year listing of IFT an annual net return of just over 43%**.

This compares to an annual return from the average of all NZX indexes of 12.5%

* Excludes dividends from 1996-1999




Long Term View Series


Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Wakefield Health Ltd


Infratil @ Share Investor

What Infratil sale of Auckland Airport stake means

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Telecom Chart: Lazarus Recovery on lower volume

Since I have been closely following the Telecom NZ [TEL.NZ] share price I have wondered how low the share price was going to go and if indeed lows of $1.81 reached just a month ago meant that the stock was oversold.

Well, since then the share price has put on 12% on about half the volume (see 23 month TEL chart above) of the June share price plunge and is currently trading at $2.02. Short termers will be pleased with their current gains and have seen a new trading pattern emerge where opportunities exist for gains of more than 10c. Hard to say what might happen next short term but investors with a 12% gain might consider realising some cash.

Of interest too will be medium term investors who are trying to factor in what the company could be worth if they win a government contract to set up the new fibre network around the country and will be subsequently demerger Telecom into two separate business units, Chorus, their Network company and Telecom Retail, their public face and presence.

The value of the two units will be difficult to assess given no profit or revenue projections for a Chorus with the responsibility to build, run and sell business off the new network but Telecom see profit to be made so medium term the company could be worth a punt.

Long-term my view is avoid unless you have faith in current or future management that they can turn this ship around.

By on weakness for short or medium term returns.


Telecom NZ @ Share Investor

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Chart of the Day: Kathmandu Holdings Ltd

Kathmandu Holdings Ltd [KMD.NZ] shares have had a poor run since its media/broker hyped November market debut, a few cents above the $2.13 IPO price. The stock reached an intra day all-time low of $1.78 yesterday on bad news before finishing at an all-time low of $1.82 at market close - down 17%. The share price reached an all time high of $2.56 in mid April.

I have been brutal in my criticism of this company over the last year or so for one reason or another and cant see why so many invested in the IPO.

Having said that the company does have some value. Not the value calculated in the IPO but it could be getting close to something worth looking at soon.

Put it on your watchlist because the company has more bad news to come and therefore the stock could be under share price pressure.

It is a guess but value might be found in the $1.20 -1.30 range.


Chart of the Day @ Share Investor

Chart of the Day: Rakon Ltd


Kathmandu @ Share Investor

Kathmandu Holdings: Market Update Misleads
Kathmandu's 2011 Results Under Pressure from Jan Cameron
Kathmandu IPO: Prospectus Analysis
Kathmandu IPO: Jan Cameron lands a blow to IPO
Kathmandu IPO: What is it worth?
Kathmandu IPO: Retail Interest High
Kathmandu IPO: A tough mountain to climb
Kathmandu No.1 but IPO should get the Bullet
Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
Download Kathmandu IPO Prospectus
KMD Investor Presentation to Macquarie

Discuss Kathmandu @ Share Investor Forum

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