Stocks to watch: Burger Fuel, Fisher & Paykel, Nuplex

Friday 3rd September 2010

Burger Fuel has announced it has no borrowings and cash in the bank, but still lacks the ability to grow, Fisher & Paykel has a new stakeholder, while Nuplex is forecast to face tough trading conditions in the year ahead.

Burger Fuel Worldwide (BFW): Managing director Josef Roberts told the company's AGM that it has no borrowings and is holding cash in the bank. "But what it lacks is the real capital to accelerate and take advantage of the current economic conditions," he said. "As a result growth is slower than we would like." The stock traded unchanged at 38 cents yesterday.

Fisher & Paykel Healthcare (FPH): Mondrian Investment Partners, an Anglo-American money manager with US$64 billion under management, has taken a 5% stake in the medical equipment manufacturer. Shares rose 1.7% yesterday to $2.97.

Nuplex Industries (NPX): The industrial chemical and resin maker is forecast to face a tougher trading environment in year ahead as capacity constraints in Asia and Chinese demand normalization weigh in on the company, said Forsyth Barr analyst John Cairns, quoted on the ShareChat website. Nuplex's EBITDA in the year ending June 2011 is expected to be little changed from 2010 at $139.7 million, still up from previous forecasts of $129 million. Shares were unchanged yesterday at $3.18.

NZ Farming Systems Uruguay (NZS): The South American dairy operator's board recommended Olam International's takeover bid, which values the dairy farm developer at $171 million, or 70 cents a share. Chairman John Parker said the increased offer, which is now in the independent adviser report's valuation range, and assurances that Singapore-based Olam will be able to provide funding helped sway them. The shares last traded at the offer price.

New Zealand Oil & Gas (NZO): US crude oil futures rose as Hurricane Earl and a fire at an oil and gas facility threatened to put pressure on supplies. By 1.05pm EDT, US crude for October delivery was up 53 cents at US$74.44 a barrel. Shares were unchanged yesterday at $1.20.

NZX (NZX): Fonterra announced today that it had hired NZX to help design a platform for shareholders of the world's biggest dairy exporter to trade stock amongst themselves. The securities operator was selected as one of "best under a billion" top-performing companies in Asia by Forbes Magazine. The securities market operator fell 0.7% yesterday to $1.39.

Pyne Gould Corp. (PGC): The financial services company announced yesterday that its Perpetual Group is in talks to acquire ASB Bank's Aegis WRAP platform. No price was given in their statement. Pyne Gould separately confirmed that a $100 million loan to South Canterbury Finance has been repaid following the finance company's collapse into receivership. The stock fell 2.4% to 41 cents yesterday.

Themes of the day: Stocks in Europe and on Wall Street held their ground as an unexpected gain in pending home sales, a decline in claims for jobless benefits and better-than-expected retail sales eased concerns about US economic outlook. US crude oil futures rose after a warning from the US authorities that oil supply was likely to be threatened by Hurricane Earl.

Supply side risks were also heightened by a fire on a oil and gas facility off the coast of Louisiana. The New Zealand dollar held on to yesterday's gains as solid US data helped keep investors upbeat ahead of today's American employment data. The kiwi was little changed at 71.49 US cents from 71.59 cents yesterday.

Businesswire.co.nz

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