Stocks to watch: Auckland Airport, Goodman Fielder, Ryman, Tower

Friday 11th December 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: The kiwi dollar edged up to 73 U.S. cents on the prospects of the central bank raising interest rates in the middle of 2010, earlier than it has previously flagged. Stocks rose on Wall Street after government figures showed the trade deficit unexpectedly narrowed in October.

Auckland International Airport Ltd (NZX: AIA ): The country’s major gateway has revised its guidance to the top of its forecast full-year earnings of between $93 million and $100 million, amid gains in passenger numbers over the past three months. The airport yesterday voiced its displeasure about proposed legislation to let the new Auckland authority avoid making a takeover offer when it consolidates the assets of Auckland and Manukau city councils. The shares climbed 1.6% to 1.86 in trading yesterday.

Goodman Fielder (NZX: GFF ): The shares fell 4.8% to $1.98 on the NZX yesterday after the biggest bakery company in Australasia announced the U.S. conglomerate Cargill has agreed to buy its edible oils unit, its biggest business after baking, for A$240 million.

Ryman Healthcare (NZX: RYM ): The rest-home operator said it has benefited from the financial crisis, which has reduced rivals’ access to capital while it has been able to continue building new units apace. “We are very pleased with our performance in the first half and we expect to match this performance in terms of realized profits in the second half,” chairman David Kerr and chief executive Simon Collins said in a joint statement in the company’s first-half report. The shares were unchanged at $2.08 yesterday.

Team Talk (NZX: TTK ): The company’s mobile radio business has few direct competitors, solid earnings and strong cash generation, brokerage McDouall Stuart says, according to the ShareChat website. The only rival of scale is Kordia, which has achieved only limited penetration, the report says. Team Talk shares rose 5 cents to $2.27 yesterday.

Tower Ltd (NZX: TWR ): The insurance company part-owned Guinness Peat Group has had its 2010 earnings forecast upgraded 16% to $54.6 million by a Forsyth Barr analyst, according to the Sharechat website. Analyst John Cairns boosted his valuation to $2.30 a share from $1.98, and rates the insurer as ‘accumulate.’ The shares slipped 2% to $1.95 on the NZX yesterday.

Warehouse Group (NZX: WHS ): The biggest retailer on the NZX 50 yesterday said it was disappointed that mediated talks broke down with the National Distribution Union, which counts 1,800 of Warehouse’s 7,500 workers as members. Stores won’t be disrupted because the company is taking on an extra 1,700 workers for the Christmas rush, said HR director Paul Walsh. The stock fell 0.2% to $4.11 yesterday.

Businesswire.co.nz

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