Wednesday, May 27, 2009

John Key's Socialist streak political weakness

Two stories from this week got me highly annoyed about my decision to vote National in the last election.

One was the provision of money to be used to insulate New Zealand homes and the other the idea from the Prime Minister to ban the over the counter sale of cold remedies that contain Pseudoephedrine.

On first look the idea that the Government pay to insulate New Zealand homes is a good one - warmer homes, less cost for heating healthy occupants and it doesn't cost them the full whack.

But hang on a sec what happened to working hard, saving the dosh and paying for it yourself?

You know, taking responsibility for your own life and keeping yourself warm.

Then the cold remedy thing really gets me steamed because I am a happy user of Pseudoephedrine products-they bloody work for me!  Banning a product that overwhelmingly gives relief for 10s of thousands of users every Winter because morons with a drug habit cant control their base urges makes little sense. These people will get their kicks whether we ban this or that anyway.

Both of these decisions from the Nats reject the proposition that they pushed before the election that individuals need to take responsibility for their actions and their lives and it seems the evil socialist streak that John Key had embedded in him as a child is coming out simply because it is politically advantageous to do so.

This is not what I voted the National Party in for. I want my fellow kiwis who can take responsibility for themselves given the ability to do so. To spoon feed us in the way these two examples above do is simply more of the same stuff we got from the previous lot and it needs to stop.

c Political Animal 2009

Bookmark and Share

Tuesday, May 26, 2009

Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09

Lets take a quick look at today's profit announcement for Fisher & Paykel Healthcare Ltd [FPH.NZ]

Key Points:

1. Real revenue growth up by 10% to US$299.3 million.

2. Profit up over 70% and revenue up 28% is an excellent result- In New Zealand dollar terms.

3. A big contribution from a favourable exchange rate.

4. Nice contribution from the sleep apnea products.

5. Steady DIV of 7 cents - a DIV re-investment plan to be initiated.

6. Outlook positive for 2009-2010.

The stockmarket has reacted negatively to this result, marking shares down 20c at time of writing because profit guidance by management for the next year is lower than expected by analysts.

On first glance this might frighten the unwary FPH shareholder but if you have been watching the US/NZ dollar exchange rate you will know that this had favoured the company in a major way over the last year and as revenue is reported in kiwi dollars this has had the effect of boosting revenue higher than real revenue growth from increased sales.

This favourable boost to company revenue through exchange rate crosses is not going to continue over the coming year and may in fact negatively impact the bottom line, as it has done in the past.

These facts are already known by the market and there should be no surprise to anyone about the exchange rate factor and its effect on company profit. Shareholders shouldn't expect the same "windfall" profits next year.

All I can say is the analysts put the anal in their name -try looking outside the office next time you quote forward profit projections.

Of course the material sales revenue figures are the all important ones and must be the main stress in this profit report and that has increased 10% to US$299.3 million-mostly on the back of their sleep sector products.

Shareholders should take note that the company is still growing, and your focus needs to be on the bottom line health of the business and not on exchange rate fluctuations which will occur regardless of what the company does.

The company like the name, is in good health.

You can find the full Fisher & Paykel Healthcare FY 2009 profit announcement here .

Disclosure I own FPH shares in the Share Investor Portfolio


Fisher & Paykel Healthcare @ Share Investor

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


Related Amazon Reading

The Business of Healthcare Innovation
The Business of Healthcare Innovation
Buy new: $36.00 / Used from: $22.50
Usually ships in 24 hours

Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A             Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond


c Share Investor 2009

Monday, May 25, 2009

Stock of the Week: Fisher & Paykel Appliances Ltd

This is the beginning of a new a column. A regular outing, I will pick one stock that may have been in the news - good or bad-or one that simply takes my fancy and recommend that investors might like to take another look at it to see if it fits their investment profile.




The inaugural Stock of the Week pick is Fisher & Paykel Appliances [FPA.NZ]. Long given a good stiff verbal beating by my good self over many years the main reason why I am picking this stock for closer scrutiny is the ability for you short term investors out there for you to make a quick buck rather than the slow and sometimes painful ones that I make.

Yes, yes, yes you could have bought at NZ 37c a few weeks back but the company's future survival wasn't clear at that point.

The stock closed at 66c on Friday and is on a trading halt until this Wednesday 27 May.

It seems there is to be some material news out this Wednesday in regard to the success or otherwise of its capital raising process.

It seems likely that the news is going be that some kind of finance has been found to keep the company going, at least for the short to medium term, with a 200 million rights issue mooted by BusinessDay over the weekend, the main reason given by FPA management for putting a trading halt on today.

There is some life left in this beast yet, how much we cannot be too sure, but there is short to medium term money to be made if one gets in early on positive news after trading is lifted on Wednesday. The short-term money to be made will be on buying quickly on Wednesday and flicking shares off to those who want to participate in the rumoured capital raising (it could actually be a cornerstone shareholder instead of or as well as) or buying quickly and holding medium to longer term hoping that the company can trade its way out of its current financial, revenue and profit troubles.

It is worth a look at and I will be taking a cursory glance at it on the big day to see if I can gain any benefit from it, as I am not against a short term punt myself.

Good luck.


Stock of the Week Series

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


Fisher & Paykel Appliances @ Share Investor

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

Download FPA Company Reports

Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A              Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond



c Share Investor 2009

Auckland Protest Supports Racism and cost Citizens Millions

So a few hundred braindead losers who think there should be Maaoori representation on the new Auckland City Council without them being democratically voted in stopped Auckland traffic this morning costing those that work for a living 10s of millions of dollars in lost income.

Did they ever think about what they were protesting for?

Well, plain and simple they were protesting to support apartheid. Yep, these morons were holding up you and me to support racism.

Ironically a large percentage of those protesting today were also protesting against apartheid in South Africa during the 1981 Springbok tour.

The Willie Jacksons, John Tamaheres and Haraweras of this world protested against the evil of South African apartheid in the 1980s but these racists are back in 2009 proposing the very same thing for Auckland.

Its evil, nasty, venal, lazy thinking and it has no place in a modern progressive society. 

We should all be ashamed of them and some of us really need to grow up, shun tribalism and embrace freedom, capitalism and democracy.

c Political Animal 2009


Bookmark and Share