FPH - Fisher Paykel Healthcare.

[noodles]

Thanks for recommendation Noodles, probably a bit small for my liking, in market cap, and in liquidity volumes, if I can't buy or sell $100k worth on the book, I generally try to avoid.

It wasn't a recommendation Just an idea.

Yes, SOM is for those without big money to invest. I note that there has been decent liquidity of late. The order book probably doesn't reflect volume.

I like your approach to FPH. Please keep us informed on your next purchase.

[samdaman]

where are you getting a 15% eps growth? I just did a quick DCF on this and it seems to be massively overvalued? I stand to be corrected (especially because I'm new and the DCF was rough) but their FCF's over the last few years seem to be decreasing + over the last say 8-9 years have been rather similar rather than showing growth? I must be missing something because from what my quick squiz shows they're looking rather average?

[noodles]

thanks noodles I had a look at SOM nice revenue growth, but FPH more attractive in the eps growth. SOM share price up almost 50% in last 6 months me thinks the ship has sailed.

snapiti,

I think the recent rise has been due to 3 factors:
1. The last quarterly produced revenue growth of 43% over a year ago
2. Intelligent investor produced a pre-tax earning announcement of $12.4 million (post tax of 9mill)
3. An expectation that management will upgrade FY14 revenue estimate

SOM still have a market cap of just $74 mill and share price of 1.65.

If we apply a pe of 30 to SOM for FY18 earnings, you get a shareprice of 6.23.

I know there is a lot of water under the bridge to get there, but there is potential. Perhaps more than FPH given the relative small size currently.

[Microsloth]

More good news

http://www.stuff.co.nz/business/indu...s-Mexico-plant

Fisher & Paykel Healthcare has raised its earnings guidance and brought forward plans to expand its manufacturing facility in Mexico.
The firm's annual profit for the year to March 31 is now seen at $97 million, up from the November forecast of $90-$95m.
"Demand during the second half has been very encouraging, particularly for our Simplus, Eson and Pilairo Q masks, which are used for the treatment of OSA,'' chief executive Michael Daniell said.

[JayRiggs]

Yes very nice to see the good news.
Wonder when they will increase the dividend? It's been sitting on 12.4cps for many years.

[percy]

I just love earnings up grades.Very pleasing.

[BlackPeter]

still over valued price ... trade the swings of this stock going forward, whatch out for kiwi possible weakening next year if our debt stays constant.. this was ai big trade from 1.90 to 3.80

but here its p/e is still to high, its now fully priced even for future earnings

tend to agree. ft.com annual SP target is between 2.91 and 4.90 (with a mean value of 4.10). Good company, good product, promising potential, but already quite high PE. At the current share price of 4.13 does it in my books NOT look like a "BUY".

Discl: On my Watchlist, but do not hold ...

[JayRiggs]

Yes agree it is overpriced at this point in time. I've held FPH for 3yrs and it's been a great run up. I've reinvested dividends via DRP, but at these prices, I'm thinking of taking cash over DRP.
I would still like to hold this in case the USD ever comes back up again.

[1leon]

I just love earnings up grades.Very pleasing.

But is an an upgrade really warranted? Previous indication $90-$95m new $97--surely coming in, if it does, at $97m is pretty close to range up to $95m. Are we really now going to see upgrades for companies for the sake of $2m?

[Bjauck]

,They have delivered very good figures, despite the NZD perhaps being at the strongest point in the cycle. If the NZD is at the top of its cycle, then going forward FPH figures will have a tail wind to help them along in addition to its products being in greater demand than anticipated.