FH Faulding & Company Limited

By Intelligent Investor · 28 Jul 2000

By Intelligent Investor ·
28 Jul 2000

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F H Faulding & Co Limited - FHF

Current price

n/a

Price at review

$8.40 at (28 July 2000)

All Prices are in AUD ($)

This venerable drug maker and pharmacy owner has enjoyed a healthy share price rise since our review in issue 54 (Accumulate - $7.80). It's currently on a PER of around 17.5 times expected 2000 earnings, slightly higher than Sigma. We like it as a health sector play with moderate risk, if you don't want to pay top dollar for a stock like CSL. Faulding trades at a premium to Sigma because it's very well established and sells its products in 70 countries. But it trades at a discount to companies like CSL because it's forced to fight hard for a share of the market for generic (or copycat) drugs once the patents held by their developers expire. The company restructured in June, separating its pharmaceuticals business from it other businesses. The market loves this sort of thing as it arouses speculation over possible future spin offs and takeovers. Continue to ACCUMULATE.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

FH Faulding & Company Limited

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FH Faulding & Company Limited

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