Stocks to watch: AMP Office, NAP, Farming Systems, NZX, SEK, TEL, WEN

Wednesday 26th May 2010

AMP Office is delaying its review of corporate governance and management fee structures, NPT posts an annual loss, while NZ Farming Systems benefits from Fonterra lifting its milk forecast and NZX looks to diversify its earnings through new acquisitions.

AMP NZ Office Trust (APT): The trust said yesterday it was delaying a strategic review of its corporate governance and management fee structures for two months. “The review, announced in October 2009, is intended to culminate in a series of changes” to be proposed to unitholders at a meeting in late August, it said. The shares were unchanged at 71 cents yesterday.

National Property Trust (NAP): The property investor yesterday posted a narrower loss of $13.2 million in the 12 months ended March 31, from a loss of $21 million a year earlier. The trust, whose manager has been forced to agree to a meeting to vote on its dumping, said it will maintain dividends at 4.5 cents a unit in 2011. The shares fell 4% to 40 cents yesterday.

NZ Farming Systems Uruguay (NZS): The developer of dairy farms in South America rose 4.9% to 43 cents yesterday after Fonterra Cooperative Group lifted its forecast for next year’s milk payout, stoking optimism for higher global dairy prices. PGG Wrightson (PGW), the nation’s largest rural services company, was unchanged at 53 cents.

NZX (NZX): The stock exchange operator is rated a ‘buy’ by brokerage McDouall Stuart, according to the ShareChat website. The company is diversifying its earnings with acquisitions such as Melbourne-based grain trader and will be able to use its technology to develop further agri-market infrastructure. NZX is over-capitalised with its $17 million of net cash set to rise over the next few years. The shares were unchanged at $1.55 yesterday.

Seeka Kiwifruit Industries (SEK): The fruit company reported a 3.5% increase in EBITDA to $14.5 million. Net profit sank to $1.4 million from $5.6 million, reflecting impairments of its Vital Foods unit, loss of management contract and reduction in the value of a property sale. The shares were last at $3 on May 12.

Telecom Corp. (TEL): The phone company’s stock sank 5.6% to $1.85, a new two-decade-low, yesterday. The government this week scotched reports it would take a stake in Telecom’s Chorus network business to allow the company to fully participate in its $1.5 billion broadband rollout. The broadband plan threatens to erode Telecom’s market share.

Widespread Energy (WEN): The company said its adviser, Rockpoint Corporate Finance, had completed a preliminary feasibility study of the prospects of its Chatham Rise licence for mining phosphate off the sea floor, which “confirms that commercial development of the resource is a realistic possibility.” Further study is required, WEN said. Rockpoint put a valuation on the project of $20.9 million. The shares were last at 14 cents on April 26.

Themes of the day: The Reserve Bank's survey of expectations, released yesterday, shows business managers' expectations for inflation for the next two years have lifted. The survey shows inflation one year ahead is expected to be 2.9% from 2.1% three months ago. US consumer confidence rose to the highest level in more than two years, helped by an improving jobs outlook in the world's biggest economy. The kiwi dollar rose from a 10-month low and recently traded at 67.07 US cents.

Businesswire.co.nz

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