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
Ecoya Ltd
Contact Energy Ltd 4
The Warehouse Group Ltd 2
Contact Energy Ltd 3
Contact Energy Ltd 2
Xero Ltd 2
Pumpkin Patch Ltd 4
Pumpkin Patch Ltd 3
Hallenstein Glasson Holdings Ltd
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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Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) by Benjamin Graham Buy new: $41.77 / Used from: $32.40 Usually ships in 24 hours

c Share Investor 2012

"Teapot Tape" Recording

There is nothing of import or indeed anything coming even close to embarrassing on the so-called "teapot tapes" recorded between John Banks and John Key before the 2011 election.

All whipped up my a brain-dead left media with a story to manufacture in the absence of any real scandal.

If you can hear it, have a listen.

Try not to go to sleep in the first minute.

NEW - From Fishpond.co.nz


Steve Jobs Biography - By Walter Isaacson


c Darren Rickard 2012

Share Price Alert: Pumpkin Patch Ltd 5

PPL 1 Year Chart

Pumpkin Patch Ltd [PPL.NZX] shares have had a dire past 12 months, dropping from $1.65 in February 2011, hitting an all-time low of 58c in December and finishing up 7% to finish trading at 75c yesterday on news that the company are putting their UK division into voluntary administration.

This is very good news for the company after 11 million or so in costs is stripped out of the company for the restructure.

This is going to have a positive impact on the PPL share price.

I think there could be some more share price weakness when the 1st half result is out in March because it will be a big loss so patience again will be the key to getting a better deal here.

Of course the fortunes for the company will be better without the ongoing losses from the UK division and that will be cemented if their remaining Australasian stores start to perform better. 


A bigger boost will come if dividends are reinstated. I doubt whether this will happen in the half-year result out in March and is more likely to come in the result out in October.


As I said above, be patient , the rise yesterday was on tiny volume so there will be more volatility in share price until some positive financial news comes out.


Good luck.


Disclosure I own PPL 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
Fletcher Building Ltd 4
Fletcher Building Ltd 3
Port of Tauranga Ltd 2
Contact Energy Ltd 5
Ecoya Ltd
Contact Energy Ltd 4
The Warehouse Group Ltd 2
Contact Energy Ltd 3
Contact Energy Ltd 2
Xero Ltd 2
Pumpkin Patch Ltd 4
Pumpkin Patch Ltd 3
Hallenstein Glasson Holdings Ltd
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


Pumpkin Patch @ Share Investor

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Steve Jobs Biography - By Walter Isaacson

c Share Investor 2012

Pumpkin Patch Ltd: UK Store closure better late than never

PPL Store, Metrocentre Gateshead, UK

News out yesterday that Pumpkin Patch Ltd [PPL.NZX] 36 UK stores are to be put into voluntary administration is no surprise to most PPL watchers but is a surprise to some, like me, who think it should have been done 24 months ago when the writing was clearly on the wall. Management have taken too long to make a decision. Curiously the Ireland operation will continue to operate - how strange.

Apparently it is up to the receivers what happens to the stores now but it isnt clear just what that is yet.


Neil Cowie, Pumpkin Patch Group’s CEO:

"Cowie added “As part of the administration process we are effectively handing over the day to day control of the UK subsidiary to the administrators. As such we cannot pre-empt what actions the administrators may take in the coming days and weeks. However we anticipate that if they cannot find any alternative options some or all of the UK stores will be closed.

Cowie continued “We are confident that there is a place in the UK market for our brands. This is supported by our fast growing UK online operation and the fact that 750,000 customers shopped at our UK stores over the last 18 months. In fact the review highlighted a number of interesting opportunities for Pumpkin Patch and Charlie & Me in the UK and we will be exploring these over the coming months".

Does that mean the stores can continue as Pumpkin stores but the brand licensed to a new owner? That is one scenario but we will have to stand-by to find out.

The ditching of the UK business will of course cost more shareholder money - around 11 million in cash off the first half result coming up in March - but the news is positive given ongoing costs of this turkey will be roasted and over with once the UK business is cut off from the parent balance sheet.

Along with their disastrous foray into the United States, which ended in 2010, Pumpkin Patch management have buried around 50 - 60 million in cash in a hole in the garden somewhere and some dog has dug it up never to return it. Zip, nil, nada, GONE!

We must move on though it is only money after all (stop rolling your eyeballs) and look at what us shareholders still have left. 195 odd stores in New Zealand and Australia (a handful in one of the PIIGS, Ireland) and a good brand slightly dented by a tired image and poor supply chain.

The retail outlook in Australasia doesn't look too cute though but it will see a recovery over the next few years and a slimmed down PPL will be ready to do what it does best. Sell its well known well-loved clothes and brand to the public.

Lets hope we can ditch the few remaining directors and management that have made the last 5 years a pain in the backside.

Disclosure I own PPL shares in the Share Investor Portfolio.

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c Share Investor 2012