Stocks to watch: Fisher & Paykel, NZS, Infratil, BLIS, NZS, NWF, VCT

Tuesday 30th March 2010

NZ Farming Systems Uruguay sells dry stock pasture land for US$8.5 million while the Infratil/NZ Super consortium pays $696.5m for Shell's downstream assets. Fisher & Paykel Appliances reports that its net debt has tumbled and New Zealand Windfarms' shares jump 11%.

Fisher & Paykel Appliances (NZX: FPA ): The appliances manufacturer yesterday said net debt had tumbled more than 60% allowing it to secure new terms for its bank funding. Debt will have dropped to less than $200 million at March 31 from more than $500 million in May 2009. The stock gained 1.7% to 61 cents yesterday.

Infratil (NZX: IFT ): The Wellington-based investment group yesterday said it has teamed up with the New Zealand Superannuation Fund to acquire Shell’s downstream petro-chemical assets for $696.5 million. The purchase includes a 17% stake in New Zealand Refining, Shell’s chain of petrol stations, truck-stops, aviation and marine fuel supply facilities, and a 25% stake in the FlyBuys customer loyalty programme. Yesterday the shares rose 1.8% to $1.68.

NZ Farming Systems Uruguay (NZX: NZS ): The developer of dairy farms in South America said it sold 2,500 hectares of land on its Tobay farm in eastern Uruguay for US$8.5 million, allowing the company to repay nearly half an outstanding debt to shareholder PGG Wrightson. The stock climbed 5.3% to 40 cents yesterday.

New Zealand Windfarms (NZX: NWF ): The Manawatu-based wind turbine electricity generator’s eight-for-three $31.4m million rights issue is so deeply discounted that shareholders should take up their rights Craigs Investment Partners analyst Grant Swanepoel said in ShareChat. The issue is priced at 15 cents a share, compared to 39 cents the shares were trading at before the issue was announced. “The value shifted into the rights is too large for existing shareholders to consider anything but following,” Swanepoel said. NWF’s shares jumped 11.5% yesterday to close at 39 cents.

Renaissance (NZX: RNS ): The IT and Apple products distributor yesterday forecast higher sales and profit. The company also released details of a long-term incentive plan for new chief executive Richard Webb and chief financial officer Shaun Rendell which will only be maximised if the stock soars to $2 over the next three years. Webb said he is “absolutely” confident the shares can rise that much. The shares jumped 15% to 23 cents yesterday.

Rubicon (NZX: RBC ): The biotech and forest products investment company has completed its $21 million capital raising, allow it to repay debt. The shares were unchanged at 90 cents yesterday.

BLIS Technologies (NZX: BLT ): The company said yesterday that Edinburgh Equity Nominee exercised an option to subscribe for 1 million mandatory convertible cumulative preference shares, raising $1 million. The option was part of Edinburgh underwriting agreement for BLIS’s April 2009 rights issue and brings the total raised to $3 million. Good progress is being made with business development in North America and in other market sectors consistent with its three year commercialisation strategy, chairman Peter Fennessy said. The shares rose 4% to 10 cents yesterday.

Turners & Growers (TUR): Managing director Jeffery Wesley said in the company’s annual report that “very satisfactory profits being generated in January andFebruary.” Still, he said economic recovery “is not only extremely fragile but non-existent in several quarters.” Economic recovery in western countries including New Zealand “will be another 2–3 years in the making.” The shares fell 2 cents to $1.41 yesterday.

Vector (VCT): Chairman Michael Stiassny said that following the gas and electricity distributor’s interim results, analysts had raised their expectations for full-year profit. “Accordingly we now expect our 12 month result to fall towards the middle of the analysts’ range,” he said. The stock rose 0.5% to $2.13 yesterday.

Economic themes of the day: The euro rose against the greenback to US$1.3460 as Greece sold 5 billion euros of seven-year bonds at 5.9%, a yield double what Germany pays. US spending rose 0.3% in February, following a 0.4% rise in January. US spending accounts for 70% of its economic activity.

The Dow Jones rose 0.38%, while the Standard & Poors 500 index lifted 0.44%. A report by Birinyi Associates Inc. predicts a S&P 500 index rise to 1325 for the year end, implying a 14% increase on its current level.

Businesswire.co.nz

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