Stocks to watch: Fisher and Paykel, GPG, Sky City, Salvus Strategic

Tuesday 16th March 2010

Fisher & Paykel Appliances are looking to take over Australian distribution of Haier products and GPG says its Coats unit is over over the worst of its trading slump. Sky City Entertainment Group reiterated that full-year earnings would climb 10% and overseas markets are still looking to see whether China tightens its monetary policy.

Fisher & Paykel Appliances Holdings (NZ:FPA): The whiteware manufacturer is to take over the Australian sales, marketing and customer care services of its 20% stakeholder, Haier, under separate management from the Australian FPA brand, but using Haier’s existing distribution. Chinese Haier, the world’s second largest appliance brand recapitalised F&P last July, and it markets and distributes the NZ product in China. F&P shares fell 1.6% to 64 cents yesterday.

Guinness Peat Group (NZX: GPG ): The investment company yesterday released an upbeat briefing on its biggest investment, the thread-maker Coats. While the worst of its trading slump is over, the recovery may be hampered by rising raw material costs. “It’s not all plain sailing yet” for GPG, said Alan Moore, who helps manage $400 million at Milford Asset Management Limited., including GPG shares. The shares fell 1.1% to 89 cents yesterday.

Sky City Entertainment Group (NZX: SKC ): The casino company, in its interim report, reiterated that full-year earnings, excluding the one-time impact of the sale of its cinema chain, would climb 10% to 15%. It expects a "continuing challenging environment" in New Zealand in the second half, while Australia will reflect the tailing off of fiscal stimulus measures and the impact of a smoking ban on its Darwin casino. Yesterday, the shares gained 2.5% to $3.28.

Horizon Energy Distribution (NZX: HED ): The Takeovers Panel met on Friday to consider various compliance issues relating to the unsuccessful partial takeover offer by Marlborough Lines last September. A second meeting, initially slated for today, has been postponed until March 22. The stock last traded on February 17 at $3.75.

Scott Technology (NZX: SCT ): The designer and builder of manufacturing systems said it made a profit in the six months ended February 28 and is trading ahead of the same period last year. The company will pay an interim dividend of 1.25 cents a share and make a 1-for-10 non-taxable bonus issue. The payment and issue reflect Scott’s “continued confidence in the growth and trading ability of the company, supported by the underlying strength of the company's balance sheet.” The shares climbed 3% to $1.32 yesterday.

Salvus Strategic Investments (NZX: SAM ): The shares climbed 2.8% to 74 cents yesterday after Milford Asset Management disclosed it had acquired a 17% holding in the investment company from a firm associated with Timaru-based businessman Allan Hubbard. The Milford Aggressive Fund purchased 3,445,100 shares at 70 cents apiece from the Hubbard Churcher Trust Management last Friday, according to a filing.

Genesis Research and Development (NZX: GEN ): The biotech research group said its Share Purchase Plan closed on March 8 with subscriptions for 3.2 million shares, less than a third of the 10.2 million on offer. About $193,000 was raised selling the shares at 6 cents apiece. The shares last traded on March 4 at 6 cents.

Economic themes of the day: Overseas markets are still looking to see whether China tightens its monetary policy following stronger than expected inflation, while keeping a close eye on expected announcements from the Federal Reserve and Bank of Japan.

The Dow fell 0.25% and the Nasdaq shed 0.73%.

Businesswire.co.nz

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