Friday, November 26, 2010

Stock of the Week: Fisher & Paykel Healthcare Ltd

I think I may well find a home for the $16,000.00 in dividends gained from the Share Investor Portfolio in the 2010 calender year. I am pretty bloody excited about it.

That stock is Fisher & Paykel Healthcare Ltd [FPH.NZX] and it is on my radar again because the stock has taken a plunge over the last month or so. This is primarily based on the weak US dollar having an impact on profit. Earlier this week its first half 2011 profit result showed a dip in fortunes because of the forex impact but US dollar sales increased markedly and commentary by management indicate increasing sales revenue and as a result of that manufacturing capacity is being increased to keep up with demand.

The profit drop wasn't well received by the market and the stock has dropped by 20c since the announcement and looks to be headed further south as short term investors seem to be indicating that they expect the US dollar to remain weak for some time.

This is not going to last forever though and investors would be wise, if FPH has been on their buy list, to consider putting the stock on their watchlist and look closely for further weakness in share price.

As I said a couple of weeks ago, I am interested in a sub $2.50 purchase price and think that is entirely possible given overall market uncertainty and continued weak US dollar.

Disclosure I own FPH shares in the Share Investor Portfolio

Stock of the Week Series

Sky City Entertainment Group Ltd
Reprise 4: Contact Energy Ltd
Reprise 3: Contact Energy Ltd
Delegats Group Ltd
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
Restaurant Brands
NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances
Reprise: NZ Refining Ltd

Fisher & Paykel Healthcare @ Share Investor

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Fisher & Paykel Healthcare: 2010 Full Year Profit rests on Foreign exchange movement
Long Term View: Fisher & Paykel Healthcare
Stock of the Week: Fisher & Paykel Healthcare
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Schroder Investment Management takes big Fisher & Paykel Healthcare stake
Long VS Short: Fisher & Paykel Healthcare
Big Fisher & Paykel Healthcare trades a curious tale
Why did you buy that stock? [Fisher & Paykel Healthcare]
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Share Investor's 2008 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance

Discuss FPH @ Share Investor Forum
Download FPH Company Reports

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c Share Investor 2010

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