Stocks to watch: AMP, Infratil, OceanaGold, Windflow

Wednesday 11th November 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 New Zealand dollar dipped after Reserve Bank Governor Alan Bollard said the kiwi was unsustainably high and warned that easier credit conditions may threaten a resurgence of the debt-fueled housing boom. Shares on Wall Street pared their gains from a six-day advance after MBIA Inc., the world’s biggest bond insurer, posted a loss on credit derivatives, sending its stock down by more than a fifth. Weaker stocks helped lift the US dollar from a 15-month low.

AMP (AMP): The Australian pension plan provider jumped 9.5% to $8.10 yesterday after its rejected offer to acquire AXA Asia Pacific stoked speculation the insurance sector may see more M&A activity. “AMP itself might come on the block,” said Paul Richardson, chief investment officer at BT Funds Management. “There’s quite a sweet window of opportunity for M&A with relatively low cost of funding, if you can get it.”

Infratil (IFT): The investment group dropped 4.4% to $1.53 yesterday after announcing the sale of its 3.87% stake in Auckland Airport at $87.3 million, or $1.84 apiece, a 4.7% discount on yesterday’s closing price. It originally bought the 47 million shares in 2007 for $140 million.

OceanaGold Corp. (OGC): The gold miner yesterday increased its estimate of reserves at the Macraes Goldfield by 42%. The shares rose 8 cents to $1.70 yesterday.

Sky City Entertainment Group (SKC): The shares are rated ‘neutral’ by First NZ Capital analyst Rob Bode, according to the ShareChat website. The casino and hotel group represent’s good value, given its strong cashflow, limited competition and stronger balance sheet, he said. The shares were unchanged at $3.37 yesterday.

Taylors Group (TAY): Australia’s Spotless Services yesterday said it had succeeded in becoming a ‘dominant owner’ of the laundry services group under its takeover, with acceptances reaching 91.1%. That allows it to compulsorily acquire the remainder of the stock. Taylors last traded at $2.20.

Tourism Holdings (THL): Grant Webster, chief executive of the campervan rental company, told shareholders at their annual meeting that the coming year “will still be difficult for this business as we deal with lower demand. The shares were unchanged at 71 cents yesterday.

Windflow Technology (WTL): The suspension of the turbine manufacturer’s shares was lifted yesterday after it filed its annual report. “The achievements of the previous 12 months have been hard fought and have created shareholder value that unfortunately seems to have been undermined or eclipsed by the recent upset in relations with our key customer,” New Zealand Windfarms, said chief executive Geoff Henderson. Windflow stock last traded at $1.20.

Businesswire.co.nz

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