Stocks to watch: CER, Goodman Property, Sky TV, Telecom

Friday 6th 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: Telecom Corp., among the top three companies on the NZX 50, raised its forecast for 2010 earnings. Shares on Wall Street rallied after Cisco Systems posted earnings that beat estimates and jobless claims fell, stoking optimism the world’s biggest economy is recovering. The kiwi dollar climbed back over 72 U.S. cents.

CER Group (NZX: CER ): The company yesterday said it has a conditional heads of agreement to sell all the shares in subsidiary New Zealand Nature Co. for $3 million. The consideration will be satisfied by the payment of $2 million in cash on settlement and a deferred payment of $1 million within two years. The purchaser is current managing director David Warrick, who separately resigned as a director. The shares last traded at 1.3 cents and have climbed 44% in the past month.

Finzsoft Solutions Ltd (NZX: FIN ): The finance and banking software company posted a first-half loss of $40,000, reflecting “tough market conditions” and ongoing investment in its G3 and SOA projects. It made a year-earlier profit of $36,000. First-half revenue fell to $3.9 million from $4.8 million. The shares were unchanged at 13 cents yesterday and have tumbled 81% in the last six months.

Fletcher Building (NZX: FBU ): Australia’s Perpetual Ltd disclosed a reduction in its holding of New Zealand’s biggest construction company to 8.63% from 9.78%. The shares fell 13 cents to $7.86 yesterday.

Goodman Property Trust (NZX: GMT ): The property investor yesterday reported a 9.8% decline in first-half distributable profit to $38.5 million as it paid down debt and lost some tenants. It plans to raise $100 million through a bond issue to repay bank debt. The shares fell 1.9% to $1.01. Among other property trusts, AMP NZ Office (APT) fell 3.7% to 78 cents and Kiwi Income Property Trust (KIP) declined 2.8% to $1.05.

Sky Network Television (NZX: SKT ): The nation’s largest pay-TV company is rated a ‘buy’ by Craigs Investment Partners analyst Geoff Zame, according to the ShareChat website. Zame said Sky’s 7,048 net gain in subscribers for the first 17 weeks of the year was “slightly ahead of the 6,895 in the previous comparable period and an encouraging start to the year." Zame values the stock at $5.25. The shares rose 0.2% to $4.80 yesterday.

Telecom Corp. (NZX: TEL ): New Zealand’s biggest phone company reported a 9% increase in quarterly earnings to $163 million, helped by a one-time gain of $43 million stemming from changes in tax law. The company increased its 2010 profit guidance to a range of $400 million-$440 million, from an earlier range of $370 million to $410 million. The shares fell 6 cents to $2.48 yesterday.

Businesswire.co.nz

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