Sharechat Logo

Stocks to watch: Contact Energy, Fisher & Paykel Appliances, Telecom

Tuesday 2nd November 2010

Text too small?

Contact Energy secured draft approval for its Tauhara geothermal power station project, Fisher & Paykel Appliances confirmed the sale of a part of its Cleveland site in Australia and New Image Group has acquired a 50% stake in Living Nature.

Contact Energy (CEN): The utility company won draft approval for its 250 Megawatt Tauhara geothermal power station project yesterday under the new Environmental Protection Authority. The new plant will be the largest constructed for many years, and is likely to be built before the 220MW Te Mihi power station, in the Wairakei geothermal steamfield, for which Contact also holds resource consents. Shares rose 1% to $5.91. 

Fisher & Paykel Appliances (FPA): The whiteware maker confirmed the sale of a substantial piece of its Cleveland site in Australia for A$21.5 million ($28.1 million). As part of the arrangement the company will lease back part of the site for its Queensland operations. The proceeds of the sales, which are expected to net A$19.1 million ($25.0 million) after tax, will be used to reduce bank debt. Shares were unchanged yesterday at 60 cents. 

New Image Group (NEW): The health and wellness products manufacturer has acquired a 50% stake in New Zealand natural skincare company Living Nature. The purchase will see new capital issued and its existing shareholders remain. The purchase price was not disclosed, but New Image chairman Graeme Clegg said Living Nature will add $6 million to its annual revenue. Shares were unchanged yesterday at 30 cents. 

New Zealand Experience (NZE): The company, which operates the Rainbow's End theme park, said it expects net profit for the year to June 2011 to be in the range of $1.3 million to $1.5 million, due to improved EBITDA. This compares to the $1.5 million reported in the year to June 30, which included several non-recurring items. Shares were unchanged yesterday at 33 cents. 

Pike River Coal (PRC): The coal miner is forecast to report an EBITDA of $181 million in 2012 and $237 million the following year as its hydro coal mining comes on line, according to Craigs Investment Partners, quoted on the ShareChat website. The assumption is based on a steady-state production rate of 920,000 tonnes a year. Shares fell 1% yesterday to $1.03. 

Telecom (TEL): The company’s first quarter results, due Friday, are likely to be overshadowed by the prospect of electricity lines companies winning some of the ultrafast broadband contracts, according to Craigs Investment Partners analyst Geoff Zame, quoted on Crown Fibre Holdings missed Sunday's deadline to make recommendations to Ministers on who should be awarded the first contract, and said it will do so shortly. Shares were unchanged yesterday at 2.05.

Themes of the day: Global stocks gained as manufacturing data from the US, China and India beat expectations, providing optimism about the pace of global economic growth. In late afternoon trade on Wall Street, the Standard & Poor’s 500 Index rose 0.1% to 1,184.38.

In Europe, the Stoxx 600 gained 0.2% to 266.4 at the close. Data showed manufacturing in the US grew at the fastest pace in five months in October, in China the purchasing managers’ index rose to 54.7 last month from 53.8, and HSBC Markit PMI for India rose to 57.2 in October from 55.1 in September.

The New Zealand dollar touched a 27-month high overnight before paring gains as the latest ANZ Commodity Price Index showed further strength in October, led by rising wool prices. The kiwi slipped to 76.47 US cents from 79.59 cents yesterday.

  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:

Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
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