Stocks to watch: FPA, FPH, Hallenstein, PGC, SPY

Thursday 25th March 2010

Investors are awaiting gross domestic product figures for the fourth quarter, due today, which are expected to show growth accelerated to 0.8% - faster than the central bank has forecast. Retailer Hallenstein Glasson Holdings today posted a jump in first-half profit and said it is ‘cautiously optimistic' for the outlook.

Fisher & Paykel Appliances (NZX: FPA ): The appliances manufacturer is rated ‘accumulate’ by Forsyth Barr analyst Andrew Harvey-Green, according to the ShareChat website. Still, he has downgraded his 2010 forecast to the bottom of the company’s range, cutting his EBIT forecast for the year ending March 31 by 7.6% to $61.1 million. He cut his stock valuation by 7 cents to 89 cents. The shares last traded at 60 cents.

Fisher & Paykel Healthcare (NZX: FPH ): Chief executive Mike Daniell said US President Barack Obama’s healthcare reforms are a long-term positive for his company though it may take several shares to bear fruit, according to BusinessDay. The shares fell 1 cent to $3.24 yesterday.

Hallenstein Glasson Holdings (NZX: HLG ): The clothing chain today reported net profit jumped 56% to $8.5 million in the six months ended February 1, reflecting tough trading conditions in the year-earlier period. Sales are down 2% for the first seven weeks of the second half though margin is ahead of the year earlier. The retail environment is reasonably stable and consumer confidence is at a stronger level than last year. “Other retailers have used the phrase ‘cautiously optimistic’ and in the absence of any major negative economic news we concur with that sentiment,” chairman Warren Bell said. The stock was unchanged at $3.45 yeasterday.

New Image Group (NZX: NEW ): The manufacturer of health and beauty products based on colostrum said its direct sales channel “is resilient in recessionary times.” The company begins a joint venture trial next month in Taiwan of a new ‘sleep-enhancing’ milk product. The outlook for the company is “very positive” it said in an investor presentation. The shares fell 2 cents to 38 cents yesterday.

Pyne Gould Corp. (NZX: PGC ): The finance group yesterday announced the sale of its Marac Insurance unit into a joint venture with the Automobile Association. Marac will receive $2.2 million for a half stake in the business. The shares rose 4.3% to 49 cents.

SmartPay (NZX: SPY ): The merchant services provider said founding director Murray Henshall has resigned. Chairman John Seton said Auckland-based lawyer Greg Barclay has been appointed to the board as a non-independent director. The shares were unchanged at 41 cents yesterday.

Economic themes of the day: Investors are awaiting gross domestic product figures for the fourth quarter, due today, which are expected to show growth accelerated to 0.8% - faster than the central bank has forecast. Stocks declined on Wall Street after Fitch Ratings downgraded Portugal, sapping risk appetite. The kiwi dollar reached a two-year high against the euro and was recently at 52.61 euro cents.

Businesswire.co.nz

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