Originally Posted by
Toulouse - Luzern
There are many positives for FPH.
For example donation to NZ of 50 ventilators worth $5M to help with the initial outbreak of Covid.
Supplying hospitals worldwide to treat those ill with Covid and presumably ramping up production to do so.
However a classic sales go up but profits go down situation the end result.
I certainly hope that FPH improves on last years results for all of the shareholders and stakeholders.
Whether FPH management is sound is for others to judge.
A couple of things to consider:
(1) It seems to me Resmed (RMD) Air Sense 10 is technically superior to FPH current offering and the Air Sense 11 better still.
The Resmed AirSense 11 is only available in the US to the present and not in Australia and NZ. The reason is Philips were forced by the US FDA to recall all their installed base of Respironics CPAP machines. There are estimated to be 5,5 million. Many US users will buy RMD as first choice and not wait for a recall to work through.
(2) At a time of maximum production because of Covid increased demand, FPH appear to have been unable to manage increases in profits. They also appear not to have managed FX successfully and maybe other risks.
Don't get me wrong I want FPH to succeed for all of us.
Good luck to all at FPH.
FPH will be in almost all Kiwi's Kiwisaver portfolios. As our largest capital value company.
FPH is Simplicity's largest individual Company holding at 2.36% of the Growth Fund. FPH share price is down -36% in my Watch List over 73 weeks.
Simplicity have 1.61% of the Growth fund in AIA - don't know how it will turn out with the current activity, but today in the same Watch list it is -2.1% in 73 weeks.
Simplicity also have 1.09% of the Growth fund in Contact at -23% in the 73 week Watch list.
Spark is another of Simplicity holdings at 1.46% of the Growth Fund. It is up 1.3% over 73 weeks.
Simplicity have 7.73% of the Growth fund invested in NZ Equity.
Simplicity chose the 5 largest NZ companies.
FPH is the biggest individual company NZD holding in the whole Simplicity Growth Fund portfolio. Surprising to many but bigger than any of the US Companies, Apple, Microsoft, Amazon, Alphabet.
That is why we all need FPH to succeed and for good management in the current challenging environment.