Stocks to watch: Argosy, Diligent, Just Water

Wednesday 13th October 2010

Argosy Property Trust lead gains in the sector yesterday, Diligent shares rose after it achieved its goal of breaking even at the cash flow level, while Just Water International's executive director increased his stake in the company to just over 70%.

Argosy Property Trust (ARG): The investor formerly known as ING Property rose 1.3% to 78 cents yesterday, leading gains in the sector. Kiwi Income Property Trust rose 1% to $1.06. “Property stocks have been best performers since the start of the month, and are attracting investors for good yields with interest rates flat globally,” said Shane Solly, portfolio manager for Mint Asset Management.

Diligent Board Member Services (DIL): The provider of software support services to company boards of directors, rose 7.8% to 69 cents yesterday after announcing it had achieved its goal of breaking even at the cash flow level in the September quarter.

Just Water International (JWI): Executive director Anthony Falkenstein increased his interest in the company to 70.3% from 68.9% buying shares on market, according to an NZX statement yesterday. The shares last traded at 17 cents on October 6.

NZX (NZX): The stock exchange operator reported the first active trade on its dairy futures platform yesterday, with 10 tonnes of the earliest October 2010 contract selling at the listing price of US$3,525 a tonne. The shares were unchanged at $1.64 in trading yesterday.

Nuplex Industries (NPX): Goldman Sachs JBWere’s Tristan Joll kept his EBITDA forecast for the resins maker at $128.3 million in the year ended June 30 2011, according to the ShareChat website. That’s below a Bloomberg consensus of $140 million. Joll said a slowdown in the economies of the firm’s markets was weighing on the industry. The shares fell 1.2% to $3.22 in trading yesterday.

Telecom (TEL): Communications Minister Steven Joyce has approved a variation to Telecom’s operational separation undertakings, which helps it sidestep a number of costly investments and migrations required by the government enforced three-way separation and makes it easier to participate in the government’s national broadband plan. Yesterday, the telephone company said it is re-pricing its bid to participate in the national ultra-fast broadband initiative, and hopes to hear within weeks whether it will be chosen as a partner in the $1.8 billion government-sponsored project. The stock fell 0.5% yesterday to $2.02.

Themes of the day: Global stocks were mixed as the Federal Reserve confirmed it's leaning towards a second round of asset purchases in the minutes of its last meeting. That eroded support for the greenback, which fell 0.4% on a trade-weighted basis, and boosted the kiwi dollar to 75.45 US cents from 74.89 cents yesterday. Government data will show how much food prices rose last month, while Chinese trade data out this afternoon will stay on traders' radars.

Businesswire.co.nz

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