Stocks to watch: Hellaby, Telstra, Telecom, Port of Tauranga

Wednesday 16th September 2009

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

Themes of the day: Federal Reserve chairman Ben Bernanke said the US recession is probably over though the recovery will be slow as unemployment remains high. Retail sales in the US jumped more than expected and New York region manufacturing was stronger than forecast. Stocks on Wall Street and in Europe gained, crude oil jumped and prices of metals climbed. The kiwi dollar traded at 70.44 US cents, holding above 70 cents for a fifth day.

Hellaby Holdings (HBY): The shares of the diversified investment group were rated a ‘buy’ from ‘hold’ by Craigs Investment Partners analyst Selwyn Blinkhorne, according to the ShareChat website. "Hellaby is confident of significantly improved earnings in 2010 with the business substantially derisked and operationally now in good shape," Blinkhorne said. He raised his 2010 profit forecast to $10.9 million from an earlier estimate of $7.3 million. The shares rose 1 cent to $1.56 yesterday.

Life Pharmacy (LPL): The chain of pharmacies said acceptances of its takeover offer for rival Pharmacybrands has reached 79%. The offer is already unconditional after the target company’s largest shareholder, with 66% of the stock, indicated they would accept. Shares of Life Pharmacy last traded unchanged at 54 cents on September 14.

Mainfreight (MFT): Transport Minister Steven Joyce confirmed Road User Charges licences will record distances travelled electronically, with the system expected to be in place early next year. Joyce said the measure will cut compliance costs and cut down on evasion of the payments. The government decided to keep a pared-down version of the road user charges system instead of implementing a diesel tax. Shares in the trucking company climbed 0.8% to $5.24 in trading yesterday.

PGG Wrightson (PGW): Fonterra Cooperative Group may be able to lift its milk payment forecast as a pick up in prices hints at a recovery in global demand, the Dominion Post reported. The shares rose 1 cent to 73 cents yesterday.

Port of Tauranga (POT): The port’s main rival, Ports of Auckland, gained a cash infusion from its local body shareholder amounting to $70 million. The funds will help the Auckland port company repay debt, strengthen its balance sheet and better compete with Tauranga. Shares of Port of Tauranga were unchanged at $6.69 yesterday.

Telstra Corp. (TLS): Australia’s biggest phone company fell 4.3% to $3.83 on the NZX 50 yesterday, the biggest decline in the benchmark index after the federal government said the company will have to separate its retail and wholesale businesses or have the split forced on it to comply with the federal government’s strategy for broadband services. Telecom Corp., which is already in split mode, fell 4 cents to $2.68 yesterday.

Businesswire.co.nz

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