Being just below 400 SMA tells us of the consolidation done after 2 big years ...now its again going to show its merit ...2022 and 2023 belong to FPH .
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I hope you are right Alokdhir because my patience is wearing pretty thin. I look at Ebos - better yield, steady growth - and think, hmmmmmm.
Don't sweat your holding in FPH. If you are investing for the long term you will be fine. The exposure FPH products has had into new hospitals due to covid has fast forward the business by 3 years (their words).
Any dips in the SP is great for accumulating more shares. I set myself a rule of buying around $29 which has worked quite well over the last 12 months.
EBOS great company as well. Like Iceman says- both are great long term holds in any portfolio.
Media says
Heavyweight Fisher and Paykel Healthcare almost single-handedly drove the New Zealand sharemarket down nearly half a per cent as health stocks were hit overseas.
Sentiment not too positive on health stocks apparently
Good advice. I'll hold the line for a while longer. Logically, given that the world is nowhere near on top of Covid, one has to think FPH is going to have turbo-charged revenues for another couple of years at least. If it uses the money wisely - consolidating market share, diversifying product range, perhaps even acquisitions - then the future should be bright.
Stock Takes: What's behind Fisher & Paykel's sinking share price?
16 Sep, 2021
By: Tamsyn Parker
Fisher & Paykel Healthcare's recent share price weakness is being blamed on a change in recommendations for Covid treatment out of the United Kingdom.
The UK's National Institute for Health and Care Excellence (NICE) indicated CPAP therapy should be the standard care for Covid patients rather than Fisher & Paykel's high-flow nasal oxygen (HFNO).
The findings were based on two controlled trials conducted in the midst of the UK's Covid pandemic which found CPAP therapy reduces the need for intubation in Covid-19 patients but HFNO does not provide any benefit over standard low-flow oxygen therapy.
JP Morgan analysis on the issue noted this was a "surprising and disappointing result for F&P". But said at this stage they did not expect clinical guideline in other jurisdictions to follow the UK's lead until the results of the trial were peer reviewed and published.
"The peer view process is likely to help clarify some concerns with the results including whether the relatively high rate of cross-over between the therapy groups or the lack of a clear protocol for escalating patients to intubation was likely to have had any bearing on the results."
JP Morgan estimate the impact on sales to the UK by F&P as a result of the change in guidance will only be small.
"We estimate sales for the UK account around 4 per cent of F&P's pre-Covid revenues from consumables for the humidification of ventilate patients. Given the small size of UK revenues and the fact the previous NICE guidelines recommended against HFNO for Covid patients, we believe the latest alert is unlikely to have a material impact on group earnings."
Harbour Asset Management's Shane Solly said the situation suggested there could be a bit more consolidation to come in F&P's share price.
"It's more raising a question than saying the treatment is no longer valid." But still he said investors had to take the issue seriously.