F&P Healthcare: Breathing easy

Having just released the best range of masks in the company’s history, Nathan Bell explains why this might not be the time to sell.

Recently I attended Fisher & Paykel Healthcare's analyst day intent on getting up to speed with the company’s latest product range before issuing a Sell recommendation. The current forecast price-earnings ratio (PER) is a lofty 22, and earnings have been unsustainably boosted by currency hedging contracts that expire in a couple of years (see F&P Healthcare: Result 2013 from 23 May 13 (Hold – $2.66)).

The stock has also produced a total return (capital gains plus dividends) of 57% since our original upgrade in F&P Healthcare: An awakening on 11 May 11 (Long Term Buy – $2.19). So having bought low, we should now sell high, right?

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed…

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles