FPH - Fisher Paykel Healthcare.

[Blue Skies]

I hate to be a kill joy but.
Countries around the world and States in the US are reporting record numbers of Covid cases and in Europe (e.g. Italy) third wave of cases. Hospitals in the US & UK are overloaded with Covid cases.
The vaccine when available requires 2 doses, may only protect for 1 year & need to be kept at minus 75C presenting colossal logistical challenges delivering it (without it's efficacy being destroyed) to populations across countries. Initially NZ is supposedly getting 1.5 M doses which is only enough for 750,000 people in a population of 5 Million.
How challenging to effectively vaccinate say 70% of a population of 68 Million in the UK with 2 doses with a vaccine which may only last 1 year? The reality is mind boggling.

So if the current SP drop is a knee jerk reaction to the announcement of an effective vaccine (miraculously wiping out Covid around the globe,) then I think it's based more of short sighted sentiment than reality.
Furthermore, the lasting damage to lungs in many of the severe patients presents a whole new group of people with chronic respiratory ailments.

IMHO FPH will probably announce a record profit shortly, followed by another record profit the following year & the year after that & ....

[MarineSalvage]

right on the money Blue Skies - in reality the vaccine is a long way off and the medium term shows COVID in increasing numbers in USA and Europe

I hate to be a kill joy but.
Countries around the world and States in the US are reporting record numbers of Covid cases and in Europe (e.g. Italy) third wave of cases. Hospitals in the US & UK are overloaded with Covid cases.
The vaccine when available requires 2 doses, may only protect for 1 year & need to be kept at minus 75C presenting colossal logistical challenges delivering it (without it's efficacy being destroyed) to populations across countries. Initially NZ is supposedly getting 1.5 M doses which is only enough for 750,000 people in a population of 5 Million.
How challenging to effectively vaccinate say 70% of a population of 68 Million in the UK with 2 doses with a vaccine which may only last 1 year? The reality is mind boggling.

So if the current SP drop is a knee jerk reaction to the announcement of an effective vaccine (miraculously wiping out Covid around the globe,) then I think it's based more of short sighted sentiment than reality.
Furthermore, the lasting damage to lungs in many of the severe patients presents a whole new group of people with chronic respiratory ailments.

IMHO FPH will probably announce a record profit shortly, followed by another record profit the following year & the year after that & ....

[alokdhir]

IMHO FPH will probably announce a record profit shortly, followed by another record profit the following year & the year after that & ....

That is my humble opinion too ...

Maybe biased as I hold ...but thats my argument to myself for keep holding for next 2-3 years at least ...lol

[limmy]

IMHO FPH will probably announce a record profit shortly, followed by another record profit the following year & the year after that & ....

That is my humble opinion too ...

Maybe biased as I hold ...but thats my argument to myself for keep holding for next 2-3 years at least ...lol

Many people have sold FPH in the last couple of years or so and have regretted making those decisions. Best to keep holding the stock for more good news to keep coming in.

[Oakwood]

FPH was my first NZX purchase in 2013 @2.50, sold most last year @15.85 to fund property purchase. Couldn't bear to part with all of them though, fantastic company and a great long term hold in any portfolio.

[Blue Skies]

Food for thought.

Lots of commentary re housing market huge 16% increase in Auckland house prices over last year with corresponding comments from investors saying.... where else would you put your money with bank deposit rates so low?

How about FPH, 52% increase in SP from13/11/18 to 13/11/19, followed by 60% increase 13/11/19 to 13/11/20.
Seems to have been about the same increase year on year going back several years.

[alokdhir]

Food for thought.

Lots of commentary re housing market huge 16% increase in Auckland house prices over last year with corresponding comments from investors saying.... where else would you put your money with bank deposit rates so low?

How about FPH, 52% increase in SP from13/11/18 to 13/11/19, followed by 60% increase 13/11/19 to 13/11/20.
Seems to have been about the same increase year on year going back several years.

What are the chances that U will get an opportunity to buy FPH below $ 30 any time in the future ? Maybe same as me buying neighbour's house at last year's price ...lol

[Mr Slothbear]

Food for thought.

Lots of commentary re housing market huge 16% increase in Auckland house prices over last year with corresponding comments from investors saying.... where else would you put your money with bank deposit rates so low?

How about FPH, 52% increase in SP from13/11/18 to 13/11/19, followed by 60% increase 13/11/19 to 13/11/20.
Seems to have been about the same increase year on year going back several years.

The vast majority of this increase has been from P/E expansion. Food for thought

[Lorne Ranger]

Food for thought.

Lots of commentary re housing market huge 16% increase in Auckland house prices over last year with corresponding comments from investors saying.... where else would you put your money with bank deposit rates so low?

How about FPH, 52% increase in SP from13/11/18 to 13/11/19, followed by 60% increase 13/11/19 to 13/11/20.
Seems to have been about the same increase year on year going back several years.

I get your point but to be fair the 16% house price increase is not only an increase on your own equity but also on the borrowed money! So thats an 80% return if you have the minimum equity required (say 20%) and the house is arguably the lower risk asset, AND you can rent it out! So while the housing market is so hot it is hard for shares to compete for those investors.

[iceman]

I get your point but to be fair the 16% house price increase is not only an increase on your own equity but also on the borrowed money! So thats an 80% return if you have the minimum equity required (say 20%) and the house is arguably the lower risk asset, AND you can rent it out! So while the housing market is so hot it is hard for shares to compete for those investors.

Nothing stopping you borrowing money to buy FPH as long as you have some spare equity in property to leverage against. Dividends not too dissimilar to net rental income and no hassle with unscrupulous tenants ��