Stocks to Watch: New Zealand Equity Preview
Dec. 12 – The following stocks may be active on the New Zealand exchange after developments since the close of trading
yesterday.
Themes of the day: America’s trade deficit unexpectedly widened to US$57 billion while the number of people seeking
unemployment benefits rose to the highest level since 1982, stoking concern about a worsening slump in the world’s
biggest economy. Crude oil surged 11% after OPEC member Saudi Arabian said it reduced output more than expected. In New
Zealand today, government figures may show retail sales growth stalled in October.
Abano Healthcare (ABA): Managing director Alan Clarke said in the company’s newsletter that growth has “continued
unabated” in the 2009 financial year. Demand for private healthcare “continues to grow” and the company expects
second-half earnings growth to exceed the first six months. The shares traded at NZ$4.50 yesterday and are down about
10% this year.
Cavalier Corp. (CAV): The only carpet maker on the benchmark index has leaped about in recent sessions on relatively
low volumes. The stock jumped 8.7% to NZ$2 yesterday as just 2,278 shares changed hands. It reached a record low NZ$1.80
on Dec. 9. In August, the company posted a 14% gain in annual profit to $17.9 million, partly reflecting the
contribution from Norman Ellison Carpets.
Fisher & Paykel Healthcare Corp. (FPH): The medical equipment maker said its performance in the six months ended Sept. 30, the
introduction of new products and growth
in international sales “gives us confidence that we can achieve continuing strong revenue and earnings
growth for the full year,” it said in its interim report, released today. The shares traded at NZ$3.05 yesterday and are
down about 12% this year.
NZX Ltd. (NZX): The operator of the New Zealand stock exchange edged up 0.6% to NZ$5.50 yesterday after the board of
Bond Exchange of South Africa recommended shareholders accept the Johannesburg Stock Exchange takeover offer of 125 rand
per share. NZX is the biggest shareholder in BESA, having acquired its 22% stake on Oct. 3 for 73.17 rand, amounting to
a 71% profit in just two months.
SmartPay Ltd. (SPY): The electronic product distribution and payments processing company agreed to the terms under
which it will acquire FIVO from NATCOM to become the nation’s largest provider of Wi-Fi services.The deal includes
managing all of Telecom Corp.’s Wi-Fi sites. SmartPay shares trade infrequently and last changed hands on Dec. 9 at 2
cents. They’ve dropped about 40% this year.
Scott Technology (SCT): The manufacturer of factory production lines won a NZ$7 million order from a “major high end”
European appliance manufacturer this week and the company is continuing to field enquiries on a weekly basis, Chairman
Stuart McLauchlan told shareholders at their annual meeting yesterday. The shares fell 2.9% to NZ$1.02 yesterday and
have climbed 5% in the past month.
(Businesswire)
ENDS