Stocks to watch: Auckland Airport retail revenue, NZOG, Warehouse

Thursday 21st May 2009

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

Themes of the day: Wall Street ended lower in a day of mixed trading and the US dollar weakened. Federal Reserve minutes show Fed policy makers considered stepping up quantitative easing to stoke the US economy while Treasury Secretary Timothy Geithner said the US financial system is “starting to heal.” Crude oil climbed above US$62 a barrel in New York. In New Zealand, tourism and migration figures, National Bank’s Regional Trends survey, credit card billings and the central bank’s inflation expectations survey are pending.

Allied Farmers (ALF): The rural services and finance group raised $6.3 million through its rights issue, with the underwriter, McDouall Stuart Group, being called upon to take up $1.83 million. The proceeds will be used to refinance the acquisition of Speirs Group last September, reduce debt and provide working capital. The company has extended its fully-drawn $21.5 million term facility and $2.5 million overdraft to July next year. The shares dropped 8.7% to 42 cents yesterday.

Auckland International Airport (AIA): The nation’s busiest gateway said retail revenue for 2010 is likely to be $90 million to $93 million, less than current market consensus of around $104 million. The lower revenue reflects the switch to a dual operator duty free franchise and the impact of declining international passenger volumes, reduced consumer spending and construction work in departures areas. The airport said there’s no change to its 2009 earnings guidance. The shares rose 1 cent to $1.67 yesterday and are up 2.5% this year.

Fisher & Paykel Healthcare (FPH): Funds associated with Schroder Investment Management disclosed a combined substantial holding in the company of more than 5%. Shares of the maker of breathing devices and respirators have dropped about 3% this year while the NZX 50 is little changed. The stock slipped 0.6% to $3.16 yesterday. The shares are rated ‘outperform,’ based on estimates from nine analysts who follow the stock.

New Zealand Oil & Gas (NZO): Oil rose to more than US$62 a barrel for the first time in six months after US Energy Department figures showed US stockpiles dropped 2.11 million barrels to 368.5 million barrels last week. Crude oil for July delivery rose 3.2% to US$62.05 a barrel on the New York Mercantile Exchange. NZOG stock rose 2 cents to $1.48 yesterday and has climbed 15% this year.

NZ Farming Systems Uruguay (NZS): Shares of the company developing dairy farms in South America soared 25% to 69 cents yesterday, the biggest gain on the NZX 50, trimming its slide this year to 8%.

Warehouse Group (WHS): First NZ Capital analyst Sarndra Urlich rates the company ‘underperform,’ according to the ShareChat website. The performance of the retailer’s Blue Sheds stationery chain is “beyond disappointing and should prompt management to review its strategy," Urlich said. Warehouse’s flagship Red Sheds are holding their own in a difficult market. Urlich forecasts annual adjusted net earnings of $83.7 million, rising to $93.5 million in 2010. Earnings on the same basis in 2008 were $84.1 million. The stock was unchanged yesterday at $3.68.

Businesswire.co.nz

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