Stocks to watch: Delegat's, Infratil, Warehouse, Wrightson

Thursday 3rd December 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 ANZ Commodity Index is published today, which will show if prices have continued on a tear and the impact of a high kiwi dollar. Stocks were mixed on Wall Street, with financials weaker after an analyst report on JPMorgan said lenders may lose out if the U.S. tightens regulation of derivatives. The kiwi dollar fell.

Delegat’s Group Ltd (NZX: DGL ): Managing director Jim Delegat told shareholders yesterday that the maker of Oyster Bay wines expects to grow sales in the 2010 financial year and match last year’s record profit. The shares rose 2.5% to $2.51 yesterday and have climbed almost 20% this year.

Infratil Ltd (NZX: IFT ): The investment group in talks to buy assets from Shell New Zealand said Shell’s fuel distribution business and refinery stake “has predictable and favourable long-term prospects, is available at a sensible price and is in an industry where Infratil has good knowledge.” The shares climbed 0.6% to $1.66 yesterday.

PGG Wrightson (NZX: PGW ): New Zealand’s biggest rural services company rose yesterday after the price of milk powder climbed to a 15-month high in Fonterra’s online auction, boding well for Wrightson’s rural customers. The company has completed its $250 million capital raising, allowing it to repay debt and strengthen its balance sheet. “The fact that it has been performing poorly in the past is due I think to uncertainty about its ability to raise capital,” said Stephen Walker, head of asset management at Goldman Sachs JBWere.

Steel & Tube Holdings (NZX: STU ): The stock is rated ‘reduce’ by Forsyth Barr analyst Rob Mercer, according to the ShareChat website. The company’s earnings outlook has deteriorated substantially due to lower steel volumes and lower steel prices, Mercer said. He expects earnings to remain low over the next few years. The shares rose 3 cents to $2.80.

Warehouse Group (NZX: WHS ): Retail staff at the company yesterday voted to strike over their working conditions, amid concern proposed contract changes that could push some workers to 50-hour weeks. The shares fell 10 cents to $4.08 yesterday.

Businesswire.co.nz

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