Stocks to watch: Lyttelton Port, OceanaGold, Pumpkin Patch

Friday 29th October 2010

Lyttelton Port is forecasting an underlying profit of at least $10 million in 2011, OceanaGold has reported a strong lift in net earnings while Tower has put its hostile takeover for Fidelity on hold.

Lyttelton Port (LPC): Is forecasting an underlying profit of at least $10 million in 2011 as the port shrugs off the effects of the Canterbury earthquake and starts the financial year strongly. Chairman Rodger Fisher told shareholders yesterday the company made a “very strong start” to the year and is tracking “significantly ahead” of the same trading period in 2009, with the cost of the 7.1 magnitude quake expected to be covered by insurance. Shares were unchanged yesterday at $2.30.

OceanaGold (OGC): Has recorded strong quarter on quarter growth with a 72% increase in net earnings, or $13.7 million, to $42.6 million, a 9% improvement in EBITDA over the previous quarter. Shares fell 1.1% yesterday to $4.60.

Pumpkin Patch (PPL): Rated as “hold” by Goldman Sachs JB Were analyst Buffy Gill, quoted on the ShareChat website. The company’s gross profit margin increased significantly in the year ended July to 61.4% of sales from 57.5% the previous year and it also booked a significant $17.1 million hedging gain relating to foreign exchange restructuring the previous year. Still, Gill said any positive catalysts for the stock over the next six months are unlikely to be radical with any recovery in Australia offset by continued subdued trading across the rest of its markets. Shares were unchanged yesterday at $1.95.

Tower (TWR): Has put its hostile takeover bid for rival Fidelity Life Assurance on hold. Chairman Tony Gibbs said the company will let its $82-a-share offer of cash and stock lapse at the end of the month after Fidelity wasn’t forthcoming in providing new information to Tower. The target signalled its unease with the offer, calling it “unhelpful” and “inappropriate”, and said it was uncomfortable giving company details to a rival. Shares fell 1.1% yesterday to $1.86.

Warehouse Group (WHS): Has won the supreme award in the EEO Trust Work and Life Awards for good parenting programmes which it claimed brought staff closer, boosted productivity and cut absenteeism. More than 200 employees in the company's South Auckland distribution centres took part in the programme. Shares fell 1% yesterday to $4.

Telecom (TEL): The Axa group of insurance companies announced yesterday after the market closed it would be reducing its holding in Telecom to 7.5% from 8.63%. Shares rose 1.5% yesterday to $2.07.

Themes of the day: Wall Street was mixed overnight, with investors hesitant to place bets ahead of next week’s Federal Reserve meeting. Investor sentiment was further dampened after 3M cut the top end of its annual forecast. In late afternoon trade the Standard & Poor’s 500 Index rose 0.1% to 1,183.67, while the Dow Jones Industrial index fell 0.1% to 11,109.71. In Europe, the Stoxx 600 rose 0.4% to 265.9. Government is set to release data on the number of build contents issued in September. The kiwi dollar rose against the greenback overnight, as investors fled the US currency ahead of next week’s expected quantitative easing announcement. The New Zealand dollar was last trading at 75.34 US cents from 74.90 cents yesterday.

Businesswire.co.nz

Comments from our readers

No comments yet