Stocks to Watch: Cynotech, Diligent, NZO, OGC, SPY

Wednesday 20th January 2010

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 Consumer Price Index for the fourth quarter is released today and is expected to show no change from the third quarter, stronger than the central bank’s -0.2% estimate. A higher number will stoke bets the Reserve Bank will act more quickly to raise interest rates. Stocks rallied on Wall Street when the U.S. re-opened after the Martin Luther King Jr. holiday. Prime Minister John Key yesterday said he wouldn’t rule out a hike in GST among possible tax reforms that are likely to include a property tax.

Cynotech Holdings (NZX: CYT ): Chairman Allan Hawkins said yesterday that he is confident of success with his second attempt to take the company private. His private investment company, Cynotech Securities Group, plans to issue preference shares paying 8% interest to holders of shares, notes and warrants of Cynotech Holdings. The shares last traded at 8.5 cents on Jan. 14, valuing the company at $10.7 million.

Diligent (NZX: DIL ): The New York-based software company posted a 78% increase in fourth-quarter sales revenue, which it attributed growing awareness of its Diligent Boardbooks product for managing the paperwork of boards of directors. The shares jumped 23% to 37 cents yesterday on the NZX.

New Zealand Oil & Gas (NZX: NZO ): The energy company yesterday said it was awarded a new exploration permit covering 1,138 square kilometres off the Taranaki coast and adjacent to PEP 38491 which contains the recently drilled Albacore prospect where traces of hydrocarbons were found. Chief executive David Salisbury said the latest permit helps with the “ongoing building of NZOG’s exploration portfolio, targeting quality acreage that will generate a portfolio of prospects, from which to choose the best for drilling.” The shares rose 0.6% to $1.62 yesterday.

NZX (NZX: NZX ): The stock exchange operator said its recently acquired CLEAR Grain Exchange in Australia has more than 65,000 metric tonnes of grain on offer, meaning it has a price set on it and is available for purchase. More than 3,000 grain growers are actively using the system, it said yesterday. The shares fell 0.4% to $2.28 yesterday.

OceanaGold (NZX: OGC ): The operator of the Macraes gold field jumped 7% to $2.56 yesterday after this week raising its reserves estimate for the third time in as many months. The increase in reserves will extend the life of the mine site to at least 2016, it said. The shares have soared 510% in the past 12 months.

SmartPay (NZX: SPY ): The EFTPOS services provider said yesterday that its Cadmus brand terminal upgrade was chosen by Auckland’s Co-Op Taxis to upgrade more than 800 vehicles. The shares rose 2.3% to 4 cents yesterday.

Businesswire.co.nz

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