Sharechat Logo

Stocks to watch: Contact Energy, Auckland Int'l Airport, Cynotech, KMD, SKT

Tuesday 23rd February 2010

Text too small?

New Zealand’s largest listed companies have broadly delivered on earnings this results season, according to Stephen Walker, head of asset management at Goldman Sachs JBWere. Still Contact Energy today reported first-half profit that missed some analysts’ forecasts.

Contact Energy (NZX: CEN ): The company reported unchanged first-half earnings today of $81 million, and is still recovering from a year-earlier period when national grid constraints and limits on the Cook Strait cable stymied trading. The utility has resisted giving guidance owing to volatile wholesale trading conditions and heavy retail competition. The stock rose 1.8% to $5.80 yesterday.

Auckland International Airport (NZX: AIA ): New Zealand's busiest gateway yesterday said it completed the retail bookbuild component of its 1 for 16 underwritten entitlement offer, which is to raise about $126 million. The clearing price was $1.82 a share, which means retail shareholders who opted not to take up their entitlements will get 17 cents for each share not taken up. The shares yesterday rose 1.6% to $1.88.

Cynotech Holdings (NZX: CYT ): The diversified investment group under takeover offer from interests associated with chairman Allan Hawkins yesterday reported a full-year loss of $1.2 million as revenue dropped 18%. The company omitted its dividend payment. The shares were unchanged at 6 cents yesterday.

Kathmandu Holdings (NZX: KMD ): The outdoor clothing and equipment retailer is still a sound investment in spite of cannibalisation, competition and the economy, said analyst Sarndra Urlich of NZ First Capital in ShareChat. The Australian market is key to future performance, but assuming it continues to get traction on its store rollout, it should be able to overcome the negative factors. She predicts declining same-store sales, but still rates it a buy. Its shares rose three cents yesterday to close at $2.13.

Pan Pacific Petroleum (NZX: PPP ) The oil company climbed 5.3% to 40 cents yesterday, leading the NZX 50 higher as the price of crude oil climbed above US$80 a barrel. New Zealand Oil & Gas (NZX: NZO ) rose 2% to $1.54.

Sky Network Television (NZX: SKT ): New Zealand’s dominant pay-TV provider posted a “very positive” 19% gain in first-half profit, with growth in MYSKY HDi subscribers the “big value driver,” said Stephen Walker, head of asset management at Goldman Sachs JBWere. Sky forecast full-year profit would be in a range of $88 million to $104 million, from $88 million in 2009 and Walker said he is surprised the stock hasn’t rallied further.

Economic themes of the day:  Benchmark indexes edged higher on Wall Street, led by banks, after a choppy session. In Europe, Germany has reportedly knocked back a proposed EU bailout package for Greece. The kiwi dollar held little changed at 70.17 US cents.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO