Share Investor

Monday, November 8, 2010

Fisher & Paykel Healthcare & the US Dollar

Of late the fall in value of the US dollar against the Kiwi dollar has had a deleterious effect on the share price of Fisher & Paykel Healthcare Ltd [FPH.NZX]. This has impacted more so over the last week as the Kiwi was buying almost 80c US as the NZX came to a close last Friday. (see 1 month chart above)

The stock has dropped by over 10% in just over a week in a overall northwards market and will continue to do so as the US dollar does an impression of a kamikaze pilot on speed.

Is this bad news for the company?

Well, yes and no.

Yes because every cent the US dollar drops against ours is a couple of million dollars off the bottomline when revenue are brought back to New Zealand and onto the balance sheet.

The bulk of the "losses" via the currency change will not be shown on the November 24 2010 half year results because FPH still have some hedging in place but we will see some impact and a clearer view on how the company is going to deal with the currency issue for 2011 and onwards.

FPH is doing very well by increasing sales in US dollar terms and has historically done well for long term shareholders, the 2009 half year result was a record one and revenue growth has continued for the company for multiple consecutive years. FPH will manage currency in the future but attention instead investors should be focused on the performance of the business rather than macro issues that are largely out of its hands.

In news to come latter this morning the company is finally building a further extension to its Auckland manufacturing base to cope with increasing demand for its products.

Look for a good opportunity to lay your hands on some of these shares as the price inevitably dips below 3 bucks.

I am looking for sub $2.50.

Disclosure I own FPH shares in the Share Investor Portfolio

c Share Investor 2010

Share Investor Portfolio: Value @ 8 November 2010

The Share Investor Portfolio is up for the 4th consecutive week. It is up 1.81% or $5038.01 from the previous update due again primarily to the 19c gain in SKC shares in the last week.

There is $15660.03 in unspent net dividends in the bank from the 2010 earnings year and approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.

Share Investor Portfolio @ at 17:30:00, Friday 05 November, 2010 (NZDT)

Stock

Quantity

Cost price

Total cost

Market price

Market value

Change

AIA

2,000

$1.700

$3,400.00

$2.160

$4,320.00

$920.00

27.06%

AIA

2,000

$1.510

$3,020.00

$2.160

$4,320.00

$1,300.00

43.05%

AIA

803

$2.150

$1,726.45

$2.160

$1,734.48

$8.03

0.47%

AIA

445

$0.000

$0.00

$2.160

$961.20

AIA

$1.650

$105.60

$2.160

$138.24

$32.64

30.91%

ASBPB

2,864

$0.000

$0.00

$0.725

$2,076.40

ASBPB

7,146

$1.000

$7,146.00

$0.725

$5,180.85

$1,965.15

27.50%

BGR

438

$0.000

$0.00

$1.460

$639.48

BGR

2,562

$0.990

$2,536.38

$1.460

$3,740.52

$1,204.14

47.47%

FBU

266

$0.000

$0.00

$8.160

$2,170.56

FBU

848

$9.750

$8,268.00

$8.160

$6,919.68

$1,348.32

16.31%

FPH

3,000

$2.350

$7,050.00

$3.000

$9,000.00

$1,950.00

27.66%

FPH

469

$0.000

$0.00

$3.000

$1,407.00

FPH

1,531

$3.720

$5,695.32

$3.000

$4,593.00

$1,102.32

19.35%

FRE

1,882

$0.000

$0.00

$3.030

$5,702.46

FRE

6,749

$3.630

$24,498.87

$3.030

$20,449.47

$4,049.40

16.53%

GFF

541

$0.000

$0.00

$1.970

$1,065.77

GFF

1,459

$2.330

$3,399.47

$1.970

$2,874.23

$525.24

15.45%

HLG

244

$0.000

$0.00

$4.530

$1,105.32

HLG

756

$2.530

$1,912.68

$4.530

$3,424.68

$1,512.00

79.05%

KIP

190

$0.000

$0.00

$1.040

$197.60

KIP

810

$1.480

$1,198.80

$1.040

$842.40

$356.40

29.73%

MFT

1,000

$7.960

$7,960.00

$7.390

$7,390.00

$570.00

7.16%

MFT

1,838

$8.000

$14,704.00

$7.390

$13,582.82

$1,121.18

7.63%

MFT

550

$0.000

$0.00

$7.390

$4,064.50

MFT

1,612

$4.200

$6,770.40

$7.390

$11,912.68

$5,142.28

75.95%

MHI

1,646

$0.860

$1,415.56

$0.770

$1,267.42

$148.14

10.47%

MHI

7,000

$0.630

$4,410.00

$0.770

$5,390.00

$980.00

22.22%

MHI

718

$0.000

$0.00

$0.770

$552.86

MHI

636

$1.050

$667.80

$0.770

$489.72

$178.08

26.67%

PPG

$0.000

$0.00

$0.300

$9.30

PPG

1,500

$0.440

$660.00

$0.300

$450.00

$210.00

31.82%

PPG

1,004

$0.800

$803.20

$0.300

$301.20

$502.00

62.50%

PPL

1,000

$3.090

$3,090.00

$1.940

$1,940.00

$1,150.00

37.22%

PPL

1,000

$2.870

$2,870.00

$1.940

$1,940.00

$930.00

32.40%

PPL

939

$4.200

$3,943.80

$1.940

$1,821.66

$2,122.14

53.81%

PPL

877

$0.000

$0.00

$1.940

$1,701.38

PPL

1,184

$1.530

$1,811.52

$1.940

$2,296.96

$485.44

26.80%

RYM

373

$0.000

$0.00

$2.160

$805.68

RYM

4,627

$1.970

$9,115.19

$2.160

$9,994.32

$879.13

9.64%

SKC

5,750

$7.430

$42,722.50

$3.210

$18,457.50

$24,265.00

56.80%

SKC

1,000

$7.600

$7,600.00

$3.210

$3,210.00

$4,390.00

57.76%

SKC

2,750

$7.700

$21,175.00

$3.210

$8,827.50

$12,347.50

58.31%

SKC

1,431

$8.750

$12,521.25

$3.210

$4,593.51

$7,927.74

63.31%

SKC

25,085

$0.000

$0.00

$3.210

$80,522.85

SKC

899

$4.720

$4,243.28

$3.210

$2,885.79

$1,357.49

31.99%

STU

$0.000

$0.00

$2.420

$188.76

STU

322

$4.740

$1,526.28

$2.420

$779.24

$747.04

48.95%

WHS

4,500

$3.730

$16,785.00

$3.850

$17,325.00

$540.00

3.22%

WHS

6,979

$6.000

$41,874.00

$3.850

$26,869.15

$15,004.85

35.83%

WHS

2,880

$0.000

$0.00

$3.850

$11,088.00

WHS

641

$3.710

$2,378.11

$3.850

$2,467.85

$89.74

3.77%

16.84%

	Total cost	Market value	Change
	$279,004.46	$325,988.99	$46,984.53

Sunday, November 7, 2010

Vector Ltd: Share Price chasing fibre network success

Vector Ltd [VCT.NZX] is not a sexy stock. It is an electricity lines company run largely by so,so management appointed under a quasi local government regime, with a small public shareholding.

What has been sexy though is the share price rise over the last two months. (see two month chart above) The stock has risen from just over $2.05 back in September to finish at $2.43 at close of business last Friday. Just under 20%.

Its full year result to June 2010 was a good one but the stock price didn't take off until mid September (see 6 month chart below) and it has been going northwards since.

Much speculation has been made as to whether VCTs bid to become a player in the roll-out of a taxpayer funded fast internet fibre laying programme and the management of that network with Vector branded internet customers providing additional income for the company but the jury is still out as to whether the company will be a player and even if they are just how profitable such a network might be for them.

This market speculation, I think, is the reason behind the share price rise. It isn't warranted and even when the facts come out about who the winners and losers will be in the battle for taxpayer moola to install and manage "fast broadband" it will be sometime before we see if it will be a money spinner for anyone.

Vector @ Share Investor

Long Term View: Vector Ltd
Vector sale decision hangs on political knife edge
NZX's Top 10 Dividend Returns

Discuss VCT @ Share Investor Forum
Download VCT Company Reports

c Share Investor 2010

Friday, November 5, 2010

Allan Hubbard: The Biography

It might be like reading the account of a best friend when it comes to reading the authorised biography of Allan Hubbard, Allan Hubbard, The Life and Times of a Kiwi Legend , out today, so you have to take the bias of the author Virginia Green with a large grain of salt because she has been picked by Hubbard's team to write the book. From publicity for the books release:

"The biography, Allan Hubbard, The Life and Times of a Kiwi Legend is due out in November.

The last two chapters will cover the sudden twist Mr Hubbard's life has taken since he and wife Jean, their company Aorangi Securities and Hubbard Managed Funds, along with seven charitable trusts, were placed into statutory management by the Government on June 20.

The biography has been written by Virginia Green, who has worked closely with Mr Hubbard for the past three years, with the manuscript expected to be finished in mid September.

Publisher Random House New Zealand publicity manager Sarah Thornton said the book was an authorised biography.

"It will be about the arc of his entire life, starting in his childhood.

The statutory management had altered the book.

"Virginia is writing the two final chapters based on recent events. We won't know the outcome of the investigation at the time of going to print."

I will be getting a copy of the book myself so I will give you my view of it shortly. The last 2 chapters on what has become the Allan Hubbard saga will be interesting.

Footnote The book release has been delayed until November 15 and will now be called Allan Hubbard: Man out of Time.

Allan Hubbard Saga

Full SFO Statement on SCF Fraud Investigation

Hubbard Letter to Simon Power

Share Investor

Monday, November 8, 2010

Fisher & Paykel Healthcare & the US Dollar

Share Investor Portfolio: Value @ 8 November 2010

Sunday, November 7, 2010

Vector Ltd: Share Price chasing fibre network success

Friday, November 5, 2010

Allan Hubbard: The Biography

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