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}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've 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 activate your membership

If you didn't receive SMS code please

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 unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles