FPH - Fisher Paykel Healthcare.

[Nevl]

Shows how important FX strategy is for NZ business huh!


is it incorrect for me to say that nearly all the profit was in fact FX dealings..

Yes and no. The FX profit is banked and drawn down as money is repatriated back to NZ and not called profit. If the Kiwi drops back to 50us and they cash out at say 60us and they get new hedging at 50us then the difference would be included as an extraordinary item. So they are basically saying they can sell $600mill before they have to use market exchange rates. That will take them through to next late next year hopefully giving them enough time to either increase prices or get some more hedging if the kiwi drops. However will be tight if there is no drop in the Kiwi by next year. But having said that they now have 40% of sales in the states and 30% in Europe and 30% in Asia so should be ok. The currency risk is well spread now. The Euro rate is still below our long run average and so they should be ok there.

[percy]

good to see R&D expanded.6.5% of operating revenue means
approx 16.3 mil.augers well for future new products and future
profits.a good company in the growing health sector.

[ratkin]

FISHER & PAYKEL HEALTHCARE INTRODUCES NEW CPAP RANGE


Rather unfortunate name
It had better be good , or we know what the nurses will be calling it

[Lizard]

Yes, I too choked on my coffee when skim-reading the announcements this morning...

Fortunately, the newspapers, more thoughtfully, translated the headline to read "F&P Launches New Sleep Apnea Product"

[Zito]

Will be interesting to see what effect the Obama health care reform bill has ... should be good.

I'm not so sure it will be good for FPH but it's too early to tell. The US Senate, in passing the ObamaCare Health Plan into law, also imposed a 2.3% excise tax on most medical devices.

Reaction from the industry has been mixed, at best. There is the risk that it will impact growth and place a premium on future research and innovation.

FPH will have been monitoring the passage of the legislation carefully. With about 40% of the company's sales in the US, they will be affected, and if they cannot pass on the tax its NPAT in the States could fall by a significant amount. We shall see.

[Catalyst]

This from CEO Mike Daniell:

Fisher & Paykel Healthcare (FPH): Chief executive Mike Daniell said US President Barack Obama’s healthcare reforms are a long-term positive for his company though it may take several years to bear fruit, according to BusinessDay.

It's interesting to compare Resmed (RMD.AU) with FPH. The two stocks operate in the sleep apnea market and normally track quite closely. I've noticed over the past six months RMD has taken off (+30%) and FPH has dropped (-5%), which is unusual.

[elZorro]

There's a slight uptick on the FPH share price these days. There are some interesting comments in the sleep apnea blogosphere about the new ICON range.

http://www.sleepguide.com/forum/topi...ource=activity

http://www.sleepzone.com.au/showitem...heading1=CPAPs

The indication is that there is some demand for this new gear, and of course USA and Europe is where the action is, not Australasia. I would guess that after a bit of customer testing/evaluation in the local field, the overseas markets will be followed up.

I've heard on the grapevine that the ICON product is very classy looking. Would now be a good time to buy FPH?

[percy]

. Would now be a good time to buy FPH?[/QUOTE]
I would look at TA.On fundamentals I think it is a very good company.It is in the health sector,has good products,has a vegry high ROIC of over 20%.Has excellent growth prospects and invests a good deal on research which is coming through with new and better products.We may even see more drugs in future delivered via the lungs which may benefit FPH.I own a few however I class them as a long term hold.

[elZorro]

Thanks for that Percy, I'm not so good at TA (or FA for that matter) but I will have a look.

I was shown just one locally-made piece of the ICON product last week, and the attention to detail was extraordinary. If all of it has been crafted like that, it's a product we'd all be proud to call NZ Made. When FPH first floated after the split, I knew there were good engineers there, but wasn't into buying shares. It would have been a good investment though.

So now here we are with the share price dropped back somewhat, and all indications are that a new product might steal a march on the competitors. I wonder if they have any patents covering the concept internationally.

[Silverlight]

Weekly chart attached.

Solid uptrend with 3.50 a pretty significant technical level, long term a break out above $3.50 could be expected, buy on the breakout, or the re-test of the support/resistance level, if it retests.