Stocks to watch: TrustPower CEO, Auckland Airport outlook

Friday 22nd May 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 fell for a third day amid as stronger-than-expected jobless claims dimmed optimism for an early recovery from recession. Standard & Poor’s lowered the oulook on the UK’s AAA rating saying public debt may reach 100% of GDP. The Dow Jones Industrial Average slipped 1.5%. The kiwi dollar climbed to 61.12 US cents.

Auckland International Airport (AIA): The shares fell 3.6% to $1.61 yesterday, the lowest price this year after the nation’s busiest gateway said revenue from the retailers in its terminals would be between $90 million and $93 million this year, below the market consensus around $104 million. Retail accounts for about 28% of the airport’s sales.

Fisher & Paykel Appliances (FPA): The manufacturer fell 1.6% to 63 cents yesterday and has dropped 54% this year. F&P Appliances, which is relying on short-term extensions to its debt facilities, is due to post earnings next week and may also announce how it intends to refinance its debt. The company will post a net loss of $5.3 million or earnings before one-time items of $27 million, according to estimates compiled by Reuters.

Goodman Property Trust (GMT): ABN Amro Craigs analysts Rob Foster and Daniel Reynolds value Goodman's units at $1.04 and rate them a ‘buy,’ the ShareChat website reported. The units rose 1.2% to 86 cents yesterday. The property group is “well-managed and well-positioned to mitigate the impact of an uncertain market environment," the analysts said. Its net debt to total assets ratio, at 35.2%, provides “comfortable headroom within the covenant for Goodman's main debt facility of 45%," they said.

L&M Petroleum (LMP): The energy exploration company said it is on track with coal seam gas drilling activities in Southland. In a progress report, L&P said its coring rig has been moved to the Mt Linton-1 site and preparations are underway to begin coring operations, which will take about two weeks to reach the target depth of 550 metres. The company said it is optimistic that Mt Linton-1 will build upon the results seen in Goodwin-1, Wairaki-1 and Bogle-1. The shares fell 6.1% to 15.5 cents yesterday.

NZ Farming Systems Uruguay (NZS): The shares dropped 15% to 59 cents yesterday, the biggest decline on the index, having soared 25% the previous day, the biggest gain on the NZX 50. Paul Harrison, who helps manage $2.5 billion at BT Funds Management, said there’s a lack of certainty about its business case and concern it may need to raise more capital as equity is dwarfed by its debt. The shares are down 8.3% this year.

NZX (NZX): The stock exchange manager’s shares have surged 52% this year, second only to Lion Nathan, which is under takeover offer at a premium. The shares rose 0.1% to $8.25 yesterday after NZX announced plans to move into commodity trading in the next 12 months, extending a drive into the agricultural that has seen it snap up rural data and media companies.

Pulse Utilities NZ (PLU): The shares gained 7% to 75 cents yesterday. After the market closed, Pulse announced the acquisition of the assets of Energy Direct from Dorchester Capital. Pulse gains 1,172 SME metering customers, which fit with its core business of smart metering electricity retail services, chief executive Dene Biddlecombe said.

Sky City Entertainment (SKC): The casino and hotel operator today said it varied the terms of its top up offer of shares, removing the condition that it depend on the share purchase plan not being fully subscribed. The company will issue $8 million from new equity while the top-up cap remains at $15 million. With this variation, the maximum amount of new equity that Sky can potentially raise under the SPP and Top-Up Offer will be $43 million, compared with $35 million prior to this variation. The shares rose 2 cents to $2.90 yesterday.

TrustPower (TPW): Chief executive Keith Tempest resigned, effective the end of the year, after 23 years with the company and eight as CEO. The Board intends to promptly commence an appointment process, it said. The shares rose 5 cents to $7.80 yesterday.

Businesswire.co.nz

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