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FPA, FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED
Lizard
post Posted: Jul 8 2008, 05:51 AM
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Over 2m shares worth of stock taken trans-tasman at end of trading yesterday - picked up at $1.83 and crossed mostly at $A1.4411.

In February, it was Peter Morgan's 452 Capital - which has a bottom-up, "value investing" philosophy. Macquarie-related Brook Asset Management were the buyers in April, with a similar approach.

No signs of any takeover prospects in those two. Wonder what it will take to halt the slide? (Not my few $k worth of buys, that's for sure!)

 
Lizard
post Posted: May 29 2008, 09:02 PM
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I think it is now time to buy FPA for the long term. Today's result was not only better than expected (at underlying level anyway) but also seems likely to mark a low in operating profit for this cycle. Looking ahead, the change in manufacturing locations should see a reduction in costs and, while I'm not expecting consumers to go on a whiteware buying spree any time soon, the key market in Australia looks likely to remain strong - particularly with demand for more housing there (and all those arriving NZers needing new appliances! rolleyes.gif)

Anyway, stats look good given they are well into a strong downturn in sales and upturn in costs for both finance and appliance sectors. At $2.23, the normalised P/E is a low 9.6, yield of 8%, but more importantly, I think at this point, the market will see a strong likelihood of growth in operating profit in the coming year - at a level which should see the PEG well below 1. This last factor is almost certainly the most important, as whether a lasting uptrend forms will depend largely upon the market being able to sustain this belief as the year wears on.

 
 


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