Stocks to watch: Nuplex capital raising, Freightways

Friday 20th March 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 US dollar extended its slide against the euro, yen and most major currencies amid speculation the Federal Reserve's quantitative easing, buying up to US$300 billion of Treasuries and as much as US$1.45 trillion of mortgage-backed securities, will sap returns from American assets. The kiwi dollar rose above 56 US cents before edging lower.

Fisher & Paykel Appliances (FPA): The manufacturer yesterday sank 7% to a record low 39 cents amid concern Nuplex Industries is struggling to sell shares to bolster its balance sheet, and FPA may be in the same boat.

Fisher & Paykel Healthcare (FPH): Schroder Investment Management reduced its holding in the company to 2.86% from 4.08%, according to a filing yesterday. The shares fell 2.7% to $3.20 yesterday.

Freightways (FRE): The courier and logistics company expects "to continue achieving positive performance for its shareholders and other stakeholders, subject to business factors beyond its control," chairman Wayne Boyd said in the company's first-half report. The shares were unchanged at $2.85 yesterday.

New Image Group (NEW): One of the world's largest retailers of colostrums, milk taken from mammals in late pregnancy, advised the market that its Asian direct selling operation is continuing strongly. Trading in the first two months of the year suggests the company's revenue for the year to 30 June 2009 may reach $100 million, it said in a statement to the exchange. Its shares have climbed 195% to 30 cents in the last 12 months.

New Zealand Oil and Gas (NZO): The oil and gas explorer has been granted a new five-year exploration permit for a 3000 sq. km area in the offshore Taranaki Basin by Crown Minerals. While no seismic data has been acquired in the area since 1981, NZOG believes there are several promising structures that could contain oil or gas. The shares slid 2.1% to $1.37 yesterday.

Nuplex Industries (NPX): The shares have been halted since Monday to allow the company time to organize the sale of at least $110 million of shares to repay debt. Institutions didn't all bite when the company offered shares at a deep discount, amid concern it may have to seek more funds down the track. The shares last traded at $1.07.

Pan Pacific Petroleum (PPP): The oil explorer, which is 15% owned by New Zealand Oil & Gas, said it had retained cash of about A$150 million at the end of January The company is being added to the S&P/ASX 300 and S&P/ASX All Ordinaries Index effective today. On the NZX yesterday, it traded unchanged at 37 cents.

Turners Auctions (TUA): New Zealand's largest auction house will be closely monitoring expenditure as it seeks to grow its market share in the middle of the recession, it said in its annual report today. The directors slashed the dividend paid to shareholders to 3.9 cents per share from 9.9 cents last year after profits sank 53% to $1.1 million. Stock declined over 40% in the last 12 months.

By Jonathan Underhill

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