FPH - Fisher Paykel Healthcare.

[alokdhir]

Some see crossing the 200EMA as a BUY signal .... buy more / top up while cheap

As such I see today as an UP day for FPH share price

Four ie 4 days in a row down ...from 27.93 to 23.48 ...need some bounce ...fifth is turnaround day ? Very possible ...But its a good entry place for future big gains ....IMHO ...but people want security of only up after buy then need wait till it crosses $ 36 ...

[couta1]

Four ie 4 days in a row down ...from 27.93 to 23.48 ...need some bounce ...fifth is turnaround day ? Very possible ...But its a good entry place for future big gains ....IMHO ...but people want security of only up after buy then need wait till it crosses $ 36 ...

Yep true investors don't rant on about using TA all the time and following squiggly lines, they buy great companies and hold through the good and bad times and only change their position if the long term story changes, has the long term story changed for FPH? that would be a big fat NO. I'm trying to be one of these investors with my 3 main holdings and thanks Percy and a few others for your constant example regarding this.

[JohnnyTheHorse]

OMG - Forbars say a forward PE of 42

If they wrote that last April was about $35 and their guru analysts calculated FY22 EPS was only going to be about 59 cents they would have said 'forward PE of 60' and still said NEUTRAL

share price being down more 30% since then

The much revered Benjamin Graham described “investment” as buying a security at a valuation that is associated with a reasonable expectation of acceptable long-term returns, based on a careful analysis of the relationship between the current price and the assets and cash flows of the business. He also observed, “The habit of relating what is paid to what is being offered is an invaluable trait in investment.” In contrast, “speculation” involves buying a security simply on the expectation that its price will advance. If you are not using well-defined and historically reliable valuation measures as a basis for investment, and you don’t have a well-defined and historically validated basis on which to expect speculative behavior from other investors, you’re probably gambling.

Do you think Ben would consider it acceptable long term returns at a PE of 42? Asking for a friend.

[SPC]

The decision analysis used by Traders and Investors is entirely different and the two shouldn't be confused in the same discussion. (Admittedly this is 'Share Trader').
Maybe we need an Investor's thread and a Traders thread.. Long term (or potential) long term holders on one side and day-trader chart line followers on the other.

[alokdhir]

Yep true investors don't rant on about using TA all the time and following squiggly lines, they buy great companies and hold through the good and bad times and only change their position if the long term story changes, has the long term story changed for FPH? that would be a big fat NO. I'm trying to be one of these investors with my 3 main holdings and thanks Percy and a few others for your constant example regarding this.

Genuine investors need pay more attention to management plans of investing $ 700 million in infrastructure to almost double manufacturing capacity over next 5 years ...ie they are looking to have around $ 4 Billion revenues in 5-7 years ...as they are a manufacturing company so they need to plan ahead ...but that shows how much faith they have in their ability to grow . Here its note worthy that FPH management always over delivers ...that is their past golden track record ...that gives their future plans more credibility .

This is the time SP is most depressed for they doing too much in one year ...some will take this opportunity and some will fear this time . Result will be equivalent in future .

Also for many finding investing in Growth stocks painful compared to smaller stocks like HGH / WHS / OCA etc ...high pains = high gains too . So depending on your time horizon 40-60% in growth stocks is not a bad strategy . But all can tailor their own needs .

I prefer long term investing rather then day to day switching in or out ...so for me many current GARP stocks will not be so in near future then need switch out to find new avenues . High yield stocks have their own place especially for going to or already retired people looking for reliable dividend streams but then they dont provide big capital gains .

No one can get best of both worlds ...yield and gains

[alokdhir]

Do you think Ben would consider it acceptable long term returns at a PE of 42? Asking for a friend.

Quoting a single year PE for investment decisions is like .....

TESLA quoted at PE of 300 too ....

Medical device industries forward PE is currently 47 ....so its not too far away from its industry peers

[RTM]

Maybe we need an Investor's thread and a Traders thread.. Long term (or potential) .

It’s amazing how quickly a Trader can become an Investor when the market drops a bit.

[winner69]

Coming soon - time to buy to get decent long term returns ..... but why wait ......buy every week until you've got your fill

Chart is annual rate of share price appreciation over 2, 5 and 10 year periods

Past says made decent gains from FPH except buying when price has been ridiculously high (four times if you count 2020) when you've incurred losses

Reckon 18 bucks in May would be cool start point ...... but better buy now in case it doesn't go down that far

[Ricky-bobby]

Long term there is going to be demand for their products. The global population is getting older and more dependent on tech keeping them alive. This is the lull after all the covid hype and beagle is right, there will prob be a couple more downgrades to come. FPH is a great kiwi success story and they will get it sorted. I’m not holding, but would look if drops to mid-teens.

[percy]

It’s amazing how quickly a Trader can become an Investor when the market drops a bit.

Quote.
"A long term hold is a short term trade that did not work out."

I do note latest profits are being wisely recycled into future production expansion.