Stocks to watch: Allied Farmers, FPA, Pyne Gould

Thursday 1st October 2009

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

Themes of the day: Shares on Wall Street slipped after figures showed weaker business activity in Chicago and companies cut payrolls. In New Zealand, a survey released yesterday showed business confidence surged to a 10-year high in September. The kiwi dollar traded at 72.15 US cents.

Allied Farmers (ALF): The rural services and finance group today said a large investor had agreed to commit up to $7 million of equity funding. Chairman John Loughlin said early signs of a return of farmer confidence “should bode well for Allied Farmers Rural after a tough period of trading.” The shares were unchanged at 28 cents yesterday and have sunk almost 65% this year.

Fisher & Paykel Appliances (FPA): The manufacturer yesterday said it won agreement from its banks to modify the terms of its banking facilities after earnings missed targets. The shares were unchanged at 69 cents yesterday.

Life Pharmacy (LPL): The chain of chemist stores is moving to compulsorily acquire Pharmacy Brands after gaining acceptance from holdings of more than 90% of the target’s stock. Life Pharmacy’s stock trades infrequently and was last at 48 cents on September 24.

Pyne Gould Corp. (PGC): The investment group is raising as much as $270 million selling shares at 40 cents apiece, seeking to restore a balance sheet eroded by write-downs on property loans. The shares had declined amid reports some investors were exiting the stock rather than participate in the offer of six new shares for every one held. The stock jumped 16% from a record low to 58 cents yesterday.

Pan Pacific Petroleum (PPP): The oil company signed a farm-in deal to acquire a 15% interest in a Timor Sea block. Two drilling locations have been identified, the first on a prospect that may hold 195 million barrels of oil and a second that may have 90 million barrels. The shares were unchanged at 69 cents yesterday.

Businesswire.co.nz

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