Stocks to watch: Telecom charges, Genesis funding, Pumpkin Patch

Wednesday 1st July 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 New Zealand dollar tumbled more than half a US cent after weaker-than-expected economic indicators out of the US stoked demand for the greenback. The currency’s fluctuations have been partly blamed for the demise of clothing maker Line 7. Crude oil dropped. Fonterra Cooperative Group’s milk powder auction results are due out tomorrow morning.

Air New Zealand (AIR): Pacific Blue will cut flights from its domestic service on main trunk routes, based on its scheduled starting August 1, the Dominion Post reported. The schedule shows an 18% reduction in domestic services, with 24 weekly flights eliminated. The airline may announce plans to increase capacity again over the next few weeks, the report said. Air New Zealand shares slipped 1 cent to 90 cents yesterday.

Genesis Research and Development Corp. (GEN): The biotech company plans to offer a share purchase scheme to bolster funds until it can realize assets, it said today. Chief executive Stephen Hall said new investment in a proposed subsidiary which will undertake its gene silencing project will be finalised in the next few weeks.

Hall said there has been “very strong interest” in its single stranded gene silencing technology, for which it has filed patent claims. The company will look to sell its holdings in Real Time Genomics Inc., Pure Power Global and various royalty rights, and will further review its corporate structure including merger and acquisition opportunities. The stock was halted yesterday and last traded at 9.5 cents on June 26.

New Zealand Oil & Gas (NZO): Crude oil dropped from an eight- month high in New York after a report showed US consumer confidence unexpectedly tumbled last month while the UK economy had its biggest contraction since 1958, stoking concern demand for fuel will remain weak. Crude oil for August delivery fell US$1.60 to US$69.89 a barrel on the New York Mercantile Exchange. NZOG shares rose 2 cents to $1.58 yesterday.

Pumpkin Patch (PPL): The children’s clothing retailer surged 10% to $1.49 yesterday after announcing the closure of most of its US stores, focusing on newer outlets that had struggled to gain traction in difficult markets.

Pyne Gould Corp. (PGC): The High Court has ordered property developer Jamie Peters to pay NZ$3 million to its finance arm Marac Finance, the NBR reported. Marac Finance was the third mortgagee on Peters’ Pacific Cliffs property. Stock in the finance company with a stake in PGG Wrightson rose 0.5% to $2.23 in trading on the stock exchange yesterday.

Telecom Corp. (TEL): The biggest company on the NZX 50 fell 0.4% to $2.73 yesterday after the Commerce Commission rejected the level of fees proposed by Telecom and Vodafone to terminate calls on their networks and recommended the prices be regulated.

Turners & Growers (TUR): Calls by Turners & Growers for deregulation of the kiwifruit industry failed to find support from growers or Agriculture Minister David Carter. Turners called for an end to Zespri's 10 year-old monopoly but the president of the New Zealand Kiwifruit Growers Association, Peter Ombler, rejected the report, saying there was "generally no grower support for deregulation.” The shares last traded at $1.65 yesterday and are up 15% this year.

Businesswire.co.nz

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