Stocks to watch: Delegat’s, Infratil, Warehouse, Wrightson
Dec. 3 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the
close of trading yesterday. All prices are in New Zealand dollars unless specified.
Themes of the day: The ANZ Commodity Index is published today, which will show if prices have continued on a tear and
the impact of a high kiwi dollar. Stocks were mixed on Wall Street, with financials weaker after an analyst report on
JPMorgan said lenders may lose out if the U.S. tightens regulation of derivatives. The kiwi dollar fell.
Delegat’s Group Ltd. (DGL): Managing director Jim Delegat told shareholders yesterday that the maker of Oyster Bay wines
expects to grow sales in the 2010 financial year and match last year’s record profit. The shares rose 2.5% to $2.51
yesterday and have climbed almost 20% this year.
Infratil Ltd. (IFT): The investment group in talks to buy assets from Shell New Zealand said Shell’s fuel distribution
business and refinery stake “has predictable and favourable long-term prospects, is available at a sensible price and is
in an industry where Infratil has good knowledge.” The shares climbed 0.6% to $1.66 yesterday.
PGG Wrightson (PGW): New Zealand’s biggest rural services company rose yesterday after the price of milk powder climbed
to a 15-month high in Fonterra’s online auction, boding well for Wrightson’s rural customers. The company has completed
its $250 million capital raising, allowing it to repay debt and strengthen its balance sheet. “The fact that it has been
performing poorly in the past is due I think to uncertainty about its ability to raise capital,” said Stephen Walker,
head of asset management at Goldman Sachs JBWere.
Steel & Tube Holdings (STU): The stock is rated ‘reduce’ by Forsyth Barr analyst Rob Mercer, according to the ShareChat
website. The company’s earnings outlook has deteriorated substantially due to lower steel volumes and lower steel
prices, Mercer said. He expects earnings to remain low over the next few years. The shares rose 3 cents to $2.80.
Warehouse Group (WHS): Retail staff at the company yesterday voted to strike over their working conditions, amid concern
proposed contract changes that could push some workers to 50-hour weeks. The shares fell 10 cents to $4.08 yesterday.
(BusinessWire)