Stocks to watch: Briscoe, Infratil, Warehouse

Thursday 9th 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: Crude oil tumbled more than 4% in New York on signs of rising stockpiles of gasoline in the US. The yen soared against the US dollar on concern US second-quarter corporate earnings will show profitability hasn’t revived.

Alcoa Inc., the first company on the Dow Jones Industrial Average to report its results, posted a smaller-than-expected loss. US Treasuries rallied after strong demand at a government debt auction.

Briscoe Group (BGR): The operator of homeware, Rebel Sports goods, Urban Loft and Living & Giving chains rose 1% to $1.01 yesterday after managing director Rod Duke said first-half earnings are expected to exceed the year-earlier $3.6 million because of cost cutting in the face of “pretty static” sales. “We’re pretty cash rich at the moment – we’re holding no debt at all,” Duke told Radio New Zealand.

Fisher & Paykel Healthcare Corp. (FPH): AMP Capital Investors said it ceased to be a substantial holder of the stock, with its holding dropping to 4.96% from 5.15%. The shares fell 3 cents to $2.86 yesterday and have slipped 8.3% this year.

Infratil (IFT): The investment group’s IFTWB warrants expire on July 10, with underwriting arranged by First NZ Capital for at least 68 million and other major shareholders committing to exercise about 30 million. Taken together with the potential sale of 32% owned Energy Developments in Australia, the company has room to repay debt and strengthen its balance sheet. The shares rose 0.6% to $1.66 yesterday.

New Zealand Oil & Gas (NZO): Crude oil fell for a sixth day after US Energy Department figures showed gasoline stockpiles climbed a bigger-than-expected 1.9 million barrels to 213 million barrels last week. Crude oil for August delivery fell 4.4% to US$60.14 a barrel on the New York Mercantile Exchange, the lowest settlement since May 19. The shares fell 4 cents to $1.52 yesterday.

Warehouse Group (WHS): Retailers “should’ve had a reasonable start to the winter season with the early start to winter,” said Paul Harrison, equities manager at BT Funds Management. “There’s no excuse for not selling a jacket or an umbrella,” he said. Warehouse slipped 0.3% to $3.71 yesterday. Hallenstein Glasson Holdings (HLG), the clothing retailer, was unchanged at $2.60.

Businesswire.co.nz

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