Share Investor

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Fisher & Paykel Appliances Ltd [FPA.NZ] had been very good to its shareholders in terms of returns since its forerunners NZX listing in 1979 - we will only be looking at the last 8 years of available data since FPA became a fully separate company from Fisher & Paykel Healthcare [FPH.NZ] and listed on November 16 2001 at $NZ2.25 (adjusted for a 4:1 FPA stock split in 2004). With $NZ 1.44 cents in net dividends (see chart above) paid and another 33% of that figure gained for those eligible for associated tax credits, a slightly more than 11% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 8 year available data gives an approximate annual net return of just over 1.37 %.

This is more than 10 times worse than the return from the average of all NZX indexes.

Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd

Fisher & Paykel Appliances @ Share Investor

Stock of the Week: Fisher & Paykel Appliances
Fisher & Paykel Appliances future looking bleak
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

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c Share Investor 2010

As an exercise in spin, the piece on 60 Minutes last night about Telecom NZ [TEL.NZ] XT Mobile Network failure was barely able to fool the foolish let alone those intelligent enough to leave the network over their recent failures.

Telecom corporate video was used to show the viewer that yes Telecom and its employees were human too and that we all make mistakes. We were supposed to feel sympathy for the hapless tel-co but most watching, especially XT customers, would have instead been close to physically sick.

Blame was apportioned to Acaltel, little to the man ultimately responsible, CEO Paul Reynolds, and it was suggested throughout that it was time for disgruntled Telecom customers to "move on".

Once again PR cannot take the place of actual service and making the product a good one, especially when it fails to live up to company promised expectations.

Arrogant, empty and inward looking, just like the culture at head office, a culture that will ultimately kill the company.

Telecom shareholders would have cringed just as much as they would have over the falling share price.