Stocks to Watch: DPC, FPA, NAP, NZO, SAT, SEK, TWR

Stocks to Watch: DPC, FPA, NAP, NZO, SAT, SEK, TWR

Nov. 26 (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.

Theme of the day: Stocks were closed on Wall Street for America’s Thanksgiving holiday while Europe’s Stoxx 600 rose 0.5% to 267.72. Investors continued to scrutinise Ireland’s bail-out package, with Clearnet lifted margin requirements on Irish bonds to 45% from 30%, the third such increase this month. The kiwi recovered from a month-low, rising to 76.07 U.S. cents from 77.51 cents yesterday.

Dorchester Pacific Ltd. (DPC): The finance company that convinced investors to swap their debenture stock in moratorium for a grab-bag of other securities is looking to buy back a quarter of the 5% notes it issued in the deal. The $5 million offer would give investors 55 cents in the dollar. The shares last traded on Nov. 23 at 15 cents.

Fisher & Paykel Appliances Holdings Ltd. (FPA): the whiteware manufacturer turned to a first-half profit, from a year-earlier loss that included one-time charges to reorganise its global manufacturing and write down assets values. Sales weakened in the latest period, driven by poorer returns from North America and Europe.Net income in the six months ended Sept. 30 was $11.3 million, or 1.7 cents a share, from a loss of $82.4 million, or 16.3 cents a year earlier. Sales fell to $549.9 million from $584.5 million. The shares fell 1.6% to 60 cents in trading yesterday.

National Property Trust (NAP): More than 99% of the property investors’ unit holders voted in favour of stripping the management contract from a unit of the failed St Laurence group and internalising it. The deal will cost $16.3 million to redeem and cancel the manager’s units next month, with a further $2.5 million buy out the contract. The shares were unchanged at 53 cents in trading yesterday.

New Zealand Oil & Gas Ltd. (NZO): The board of Pike River Coal Ltd., of which NZOG holds a 29% stake, will meet today to discuss the company’s future, and to make an initial assessment on the impairment of the mine’s value. NZOG’s shares rose 5.4% to 94 cents yesterday, paring earlier losses this week.

Satara Coopeartive Group (SAT): The NZAX-listed kiwifruit grower is reassessing its proposed merger with Eastpack Ltd. after the outbreak of Pseudomonas syringae pv actinidiae (Psa) infected 68 orchards around the country, including three of Satara’s own orchards. The shares were unchanged at $1.00.

Seeka Kiwifruit Industries Ltd. (SEK): Shares in the kiwifruit grower and post-harvesting operator surged 22% to $2.80 after it kept its forecast for earnings growth in the first nine months of the year in spite of the Psa outbreak. It expects to post earnings before one-off items of between $11.5 million and $12.5 million in the period.

Tower Ltd. (TWR): The insurer and wealth manager controlled by Guinness Peat Group lifted its full-year profit 16% to $57.6 million as its life and general insurance units lifted their performance. The company’s investment arm reported a reduced profit as it restructured its business. The shares rose 1.1% to $1.91.

(BusinessDesk)

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