Wednesday, August 10, 2011

Global Market Sell-Off Stocks: Fisher & Paykel Healthcare Ltd


Quite frankly, and as I pointed out on Friday, the whole NZX is on sale and while people are losing money people like me are contemplating buying rather than selling. On fundamentals alone there are many NZX stocks that are looking way more attractive than they had been just 3 trading days ago.

Lets look at some specific stocks though and in the second of a new series to coincide with the current stockmarket sell-off, we will look at one of the brightest parts of the Share Investor Portfolio, Fisher & Paykel Healthcare Ltd [FPH.NZX]

The company has indicated net profit after tax to be in the range of NZ$62 million to NZ$76 million for the 2012 full year, and this is either even with the 2011 full year result or up substantially and this big swing is a result of a volatile currency - US/NZ cross rate.

Revenue in US dollars for the 2012 year. will be considerably up on the 2011 year.

During the big sell-off over the last 3 trading days the fundamentals for this stock are of course looking much better.

Lets have a look

P/E 22.660
EPS $0.102
NTA $0.592
Gross Div Yield 7.581%

Over the last week the share price has dropped from $2.55c to finish trading yesterday at $2.30, which has exacerbated the drop from mid June from around 3 bucks a share. Drops of 10% & 24% respectively. This is back down to levels not seen since January of 2009 (the last Great Global Market Sell-Off (GGMSO))but well off the early 2010 high of $3.60.

Given that the big global market sell-off probably has more legs in it -even though there has been a dead cat bounce this morning on the DOW - investors would be wise to be a little patient before they jump in. There has been historical support at these levels for FPH shares as noted above but the shares traded intra-day at $2.15 before bouncing back on a weaker NZ currency.

Keep a close watch for the desperate sellers, the unpredictability of this market and currency fluctuations means good opportunities for this stock.

If you were considering buying this stock before last weeks implosion, this week the GGMSO means you will be getting it on sale*.

*If you don't like some risk, stay at home and pat the cat instead.

I own FPH in the
Share Investor Portfolio

Global Market Sell-Off Stocks Series

Sky City Entertainment Group Ltd

Fisher & Paykel Healthcare @ Share Investor

Fisher & Paykel Healthcare Ltd: Where is it Going?
Fisher & Paykel Healthcare Ltd:  Should I Buy Now?
Fisher & Paykel Healthcare Ltd: The Time to Buy
Share Investor's 2012 Stock Picks

Resmed takes market share from Fisher & Paykel Healthcare

Resmed kicking Fisher & Paykel Heathcares butt?
Share Price Alert: Fisher & Paykel Healthcare Ltd
I'm Buying: Fisher & Paykel Healthcare Ltd
Share Investor's Total Returns: Fisher & Paykel Healthcare Ltd
Share Investor's 2011 Stock Picks
Stock of the Week: Fisher & Paykel Healthcare Ltd
Fisher & Paykel Healthcare & the US Dollar
Mondrian Investment Partners take stake in Fisher & Paykel Healthcare
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]

Drinking and Trading
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

c Share Investor 2011


  1. I grew impatient and bought some FPH at 2.14 today! Ready to have another dig if it drops closer to $2.
    There's this news about FPH staff going on strike.

    Do you think this would be having some short term impact on the share price? For a company that's growing profits yr after yr, it does seem weird for it to drop to GFC levels.

  2. Nice buying Rafa, I still think I can get this for less given the uncertainty over Europe and of course the exposure of their debt to American banks.

    The strike didn't impact the share price at all and you got a close to 8% gross return based on current profit levels and dividend payout.

    Also at these levels the company has got to be an attractive company for someone to take over.

    You got a bargain.

  3. Opps I mean an over 8% gross return.

  4. FPH is a waste of money stock. Come on, there are many stocks on NZX that will beat an 8% yield. The performance is good? Stagnant performance and questionable products. I bet the stock will continue its decline as there are many other opportunities EVEN on NZX. My personal recommendation for you - dont touch this stock as you will loose you money on it.

  5. No cannot concur this is a bargain at current prices.

  6. Are you back Darren?
    Nice one if so and hope you are feeling better

  7. Welcome back Darren! We all missed you very much.
    By the way, I think you confused Ramjett for me.


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