Stocks to watch: NZ Oil & Gas, Pyne Gould, Sanford

Monday 3rd August 2009

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

Themes of the day: The US economy contracted a smaller-than-expected 1% in the second-quarter after slumping 6.4% in the first three months of the year. Three-month dollar Libor fell 0.3 basis point to a record low 0.4793%. The kiwi dollar climbed above 66 US cents as the greenback weakened. Government figures this week are expected to show the unemployment rate climbed to 5.6% in the second quarter from 5%.

New Zealand Oil & Gas (NZO): Crude oil jumped almost 4% on Friday on New York as investors took heart from the smaller drop in US GDP. US crude rose US$2.51 to US$69.45 a barrel. NZOG shares climbed 2.5% to $1.62 on Friday.

Pyne Gould Corp. (PGC): Chief executive Jeff Greenslade told the Sunday Star Times that the company’s largest shareholder, George Kerr, was prepared to offer financial support to the company if needed. The company, which aims to transform itself into a bank, last month disclosed some $160 million of impaired loans at its MARAC unit. The shares fell 1.3% to $1.58 on Friday and have declined more than 10% in the past 10 days.

Restaurant Brands New Zealand (RBD): Domino's Pizza Enterprises, the rival to the fastfood chain’s Pizza Hut brand, forecast jump in annual profit of up to 30% as harder economic times spurred consumers to ‘trade down’ to lower-cost takeout food options. A new menu and foreign exchange gains are also helping the Australia-based Domino’s. RBD’s shares fell 2 cents to $1 on Friday.

Ryman Healthcare (RYM): The shares of the rest-home operator jumped 3.6% to a 10-month high of $1.75 on Friday after chairman David Kerr told shareholders at their annual meeting that the company faces “strong demand for our new villages” and is “as busy as we’ve ever been.” Reported profit would top last year’s $53 million, he said.

Sanford (SAN): The fishing company is rated ‘sell’ by Goldman Sachs JB Were analyst Adrian Allbon, according to the ShareChat website. His 12-month target price is $5.05, down from its level on Friday, when the shares rose 4 cents to $5.30. The stock has outperformed in the past 12 months making other cyclical more attractive.

Businesswire.co.nz

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