ACC takes advantage of beat-up Pumpkin Patch shares to lift stake to 9.2 percent

Accident Compensation Corp, the state-owned no-fault accident insurance scheme with more than $20 million of funds under management, has taken advantage of retailer Pumpkin Patch's shares near an 18-month low to lift its holding to 9.2 percent.

ACC bought 500,000 shares in the children's clothing chain on July 12 for about $411,000, or about 82 cents apiece. It had previously disclosed a holding of 7.9 percent.

The shares last traded at 82 cents and fell to 74.5 cents on June 28, the lowest since January last year, when the company said full-year profit may fall as much as 35 percent because of intense competition in Australia and delays in some deliveries from wholesalers. The stock has dropped 39 percent this year.

ACC investment manager Nicholas Bagnall said the corporation typically won't comment on companies it invests in.

The stock is rated a 'hold' based on the consensus of four analysts polled by Reuters though the median price target is $1.10.

BusinessDesk.co.nz

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