Stocks to watch: Cavotec, Infratil, Scott Technology, Xero

Tuesday 3rd November 2009

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

Themes of the day: The Reserve Bank of Australia is scheduled to announce its review of interest rates in New Zealand’s biggest export market, with economists picking it will boost its benchmark interest rate a quarter point to 3.5%. That would widen the gap with New Zealand’s official cash rate to 1 percentage point. The Treasury yesterday said the pace of economic recovery has picked up pace, led by domestic activity. Statistics New Zealand will release the Quarterly Employment Survey later this morning.

Cavotec MSL Holdings (CCC): The engineering group’s Airports market unit won a series of orders to supply ground equipment to Qatar, at New Doha International Airport, and in the US, including Las Vegas airport’s new international terminal and the US Air Force’s Hill air base in the state of Utah. The value of the orders is about 4.1 million euros. The shares last traded on Oct. 28 at $2.90 and have declined 18% in the past six months.

Infratil (IFT): The shares rise 1.2% to $1.65 in a declining market yesterday after the investment group announced its exit from the 90% holding in Luebeck Airport, which failed to meet passenger targets. Separately, Infratil’s part-owned Australian energy company, Energy Developments, rejected a takeover offer from private equity firm, Pacific Equity Partners, which an independent valuer deemed inadequate.

Scott Technology (SCT): Managing director Chris Hopkins said the manufacturing systems builder has a forward workload that is “reasonable given the environment and should result in a solid result for our next half year.” Hopkins said that along with customers and partners, “our own operating environment is also difficult, especially with an extremely volatile currency and increasing business compliance costs.” The shares rose 1% to $1 yesterday.

Windflow Technology (WTL): The wind turbine manufacturer said NZ Windfarms (NWF) is continuing to withhold payment over a difference on the interpretation of the specifications of the units. The amount owed is now more than $3.5 million and if the funds aren’t paid, WTL “will need to take steps to conserve its remaining cash,” it said. WTL is preparing to pursue the money through the High Court, it said. Windflow’s shares were unchanged at $1.30 yesterday and Windfarm’s gained 2% to 51 cents.

Xero (XRO): The online accounting software company yesterday said it will offer a personal money manager product next year in partnership with Bank of New Zealand. Xero Personal will take the company into the consumer market, building on its current target of small to medium sized enterprises. The shares were unchanged at $1.65 yesterday.

Businesswire.co.nz

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