Stocks to watch: OceanaGold, Pike River, Sky City, F&P Healthcare

Wednesday 22nd July 2009

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

Themes of the day: US companies including Caterpillar posted better-than-expected second-quarter earnings, helping lift optimism the economic slump may be abating and pushing the Dow Jones Industrial Average higher. Federal Reserve Chairman Ben Bernanke said there are signs of improvement in the US economy though the central bank is likely to keep its stimulatory monetary policy for longer. The kiwi dollar advanced to 65.57 US cents.

Fisher & Paykel Healthcare (FPH): The maker of breathing devices and respirators may benefit from increased demand for its products with the spread of swine flu, according to analysts at Goldman Sachs JBWere. The virus could help lift 2010 revenue by as much as $9 million, the Dominion Post reported the brokerage as saying. Earnings before interest and tax may rise 4%, the firm said. The shares jumped 12 cents to $3.06 yesterday.

OceanaGold Corp. (OGC): The operator of the Macraes mine raised about A$24.2 million through a placement of ASX-listed Chess Depositary Interests at an issue price of A$ per CDI, an 11% discount to the average price in the previous five trading days. The shares, which were halted for the placement, rose 5 cents to $1.45 on July 20.

Pike River Coal (PRC): The coal miner delayed the scheduled date for the first 60,000-tonne export shipment to Japan by about six weeks to mid November. Pike River has sufficient funding in place to accommodate this delay, it said yesterday. The company said it is on track to meet the Liberty Harbor convertible bond condition that “first steady state” production is achieved by Nov. 30. The shares were unchanged at $1.14 yesterday.

Pyne Gould Corp (PGC): The finance group declined 4.5% to $1.70 yesterday after announcing it will acquire about $160 million of impaired or likely to be impaired loans from its MARAC unit, paying cash over time that will allow MARAC to buy government and bank securities to strengthen liquidity.

Sky City Entertainment Group (SKC ): The casino and hotel group jumped 6.6% to $3.05 yesterday, the highest level since November 10, after the company said net profit for the year ended June 30 was $113 million to $116 million, about 9% higher than its forecast in April. The results reflect better-than-expected fourth quarter revenues across its core casino operations.

Turners & Growers (TUR): The fruit and vegetable distributor said sued monopoly kiwifruit exporter Zespri Group, claiming its governing regulations are unlawful and Zespri has abused its dominant position. Turners’ stock was unchanged at $1.70 yesterday.

Businesswire.co.nz

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