Stocks to watch: F&P Healthcare, Air NZ, Comvita, Jasons

Friday 12th June 2009

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

Themes of the day: Stocks on Wall Street edged higher after figures showed a pick-up in retail sales and fewer people filing unemployment claims. Treasuries rallied after stronger than expected demand at an auction of 30-year bonds. The kiwi dollar climbed above 64 US cents as optimism about economic growth in the US stoked risk appetite and weighed on the greenback. Government figures today may show retail sales gained 0.2% in April, recovering from a 0.4% slide in the previous month.

Air New Zealand (AIR): Competition on trans-Tasman routes may become more intense after new entrant Pacific Wings applied for traffic rights, Air Transport Intelligence reported, citing a statement from the Australian International Air Services Commission. The shares were unchanged at $1.04 yesterday.

Burger Fuel Worldwide (BFW): The burger chain developer posted a full-year loss of $710,282. System sales in Australasia rose 15.5% to $25.9 million, the company said yesterday. The shares last traded at 33 cents on June 8.

Comvita (CVT): Selwyn Blinkhorne, an analyst at ABN Amro Craigs, rates the honey products company a “buy,” the ShareChat website reported. He values the shares at $1.20 apiece and says the impact of acquisitions in 2008 and more recent cost cutting are yet to be reflected in earnings. The stock rose 1.2% to 84 cents yesterday.

Fisher & Paykel Healthcare (FPH): The medical equipment maker which gets almost 80% of its revenue in US dollars fell nine cents to $3.01 yesterday as the kiwi dollar rebounded on the central bank’s decision to hold interest rates unchanged. The kiwi climbed further, holding above 64 US cents today, as optimism about the global economic outlook sapped demand for the greenback.

Jasons Travel Media (JTM): Full-year sales rose 2.4%to about $14 million, while profit declined 18% to $806,000, reflecting tougher economic conditions and costs of new activities. The company expects to match the 2009 result this year, chief executive Matthew Mayne said. The shares trade infrequently and were last at 75 cents on April 6.

Restaurant Brands NZ (RBD): The fast-food franchise operator is to join the NZX 50 Index on July 1. The company this month reported a return to revenue growth at its Pizza Hut unit for the first time in four years. The shares rose 2.9% to $1.06 yesterday.

Warehouse Group (WHS): Government figures today may show a revival in retail sales, stoking optimism consumers may be more willing to spend, amid lower borrowing costs. The shares were unchanged at $3.75 yesterday.

Businesswire.co.nz

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