Stocks to watch: DPC, FBU, MFT, RYM, TEL, WFT
Nov. 15 (BusinessDesk) – The following stocks may be active on the New Zealand exchange after developments since the
close of trading. All prices are in New Zealand dollars unless specified.
Themes of the day: Global markets steadied overnight on signs that Ireland is leaning towards accepting a bailout to
prop up its ailing banks. In late trade the Standard & Poor’s 500 Index rose 0.01% to 1,178.46, while in Europe the Stoxx 600 ended 0.5% higher. The New Zealand dollar rose
to 77.07 U.S. cents from 76.55 cents, after U.S. inflation data for October came in lower than expected at 0.2%. The
data brings the annual inflation rate in the U.S., excluding energy and food, to just 0.6% – the lowest since records
began in 1957. Statistics New Zealand is set to release third quarter Producer Price Index and Capital Good Price Index
data today.
Dorchester Pacific Ltd. (DPC): The finance company which kept receivers at bay by convincing investors to swap their
debt securities for a grab-bag of new securities, posted a first-half profit of $15.7 million in the six months ended
Sept. 30, from a loss of $8.5 million a year earlier. Operating revenue tripled to $33.8 million, with $29 million
coming from an item described as “Fair value adjustment – capital raising & capital reconstruction.” Shares were unchanged yesterday at 11 cents.
Fletcher Building Ltd. (FBU): New Zealand’s biggest construction company told shareholders at their annual meeting
yesterday that rebuilding Canterbury after the earthquake and the government programme to fix leaky homes will be the
impetus for growth in the construction industry. Profit in 2011 may be around $357 million, matching the average of
analyst forecasts, from $301 million excluding a one-time tax charge last year. Shares rose 0.9% yesterday to $8.01.
Mainfreight Ltd. (MFT): The nation's biggest trucking firm posted a 52% jump in first-half profit to $16.5 million,
before one-time items, on a stronger performance in the U.S. and Asia. The company raised its interim dividend by 0.5
cent to 9 cents and said sales and weekly trading results in October and November "are further improved raising our
expectations for a strong third quarter." The shares rose 4 cents to $7.40 yesterday.
Telecom Corp. (TEL): New Zealand’s biggest telephone company yesterday said it has cancelled its dividend reinvestment
scheme for the first quarter dividend because of share price uncertainty created by the delayed announcement of
preferred partners for the government’s ultra-fast broadband project. Shares fell 4.1% yesterday to $2.11.
Ryman Healthcare Ltd. (RYM): First-half profit rose 25% to $36 million, a record for the company. Including unrealised
valuation gains, net income was $52 million. The company raised its first-half dividend by 26% to 3.4 cents a share. “We
are trading well and we are on track to achieve our target of 15% growth in realised profit for the full year,” chairman
David Kerr said. The shares fell 3 cents to $2.16 yesterday.
Windflow Technology Ltd. (WTL): The Christchurch-based wind turbine manufacturer is looking at a $5.4 million
equity-raising bid, said it sees fat margins both for itself under a British government subsidy scheme to encourage
small-scale wind generation. The emergence of the British scheme has thrown Windflow a lifeline, as it has no forward
orders beyond its sole customer, Te Rere Hau windfarm, where construction is almost complete. The capital-raising will
be used to put foreign exchange hedging in place and strengthen its balance sheet. Shares fell 3.4% yesterday to 85
cents.
(BusinessDesk)