Stocks to Watch: F&P Appliances, Tower, Satara

Friday 26th November 2010 1 Comment

Fisher & Paykel Appliances returned to profit after a year-earlier loss, life and general insurance units boost Tower's full-year profits by 16% and Satara reassesses its merger with Eastpak in the wake of the PSA outbreak.

Dorchester Pacific (DPC): The finance company that convinced investors to swap their debenture stock in moratorium for a grab-bag of other securities is looking to buy back a quarter of the 5% notes it issued in the deal. The $5 million offer would give investors 55 cents in the dollar. The shares last traded on November 23 at 15 cents.

Fisher & Paykel Appliances Holdings (FPA): The whiteware manufacturer turned to a first-half profit, from a year-earlier loss that included one-time charges to reorganise its global manufacturing and write down assets values. Sales weakened in the latest period, driven by poorer returns from North America and Europe.Net income in the six months ended September 30 was $11.3 million, or 1.7 cents a share, from a loss of $82.4 million, or 16.3 cents a year earlier. Sales fell to $549.9 million from $584.5 million. The shares fell 1.6% to 60 cents in trading yesterday.

National Property Trust (NAP): More than 99% of the property investors’ unit holders voted in favour of stripping the management contract from a unit of the failed St Laurence group and internalising it. The deal will cost $16.3 million to redeem and cancel the manager’s units next month, with a further $2.5 million buy out the contract. The shares were unchanged at 53 cents in trading yesterday.

New Zealand Oil & Gas (NZO): The board of Pike River Coal, of which NZOG holds a 29% stake, will meet today to discuss the company's future, and to make an initial assessment on the impairment of the mine's value. NZOG's shares rose 5.4% to 94 cents yesterday, paring earlier losses this week.

Satara Coopeartive (SAT): The NZAX-listed kiwifruit grower is reassessing its proposed merger with Eastpack after the outbreak of Pseudomonas syringae pv actinidiae (Psa) infected 68 orchards around the country, including three of Satara's own orchards. The shares were unchanged at $1.00.

Seeka Kiwifruit Industries (SEK): Shares in the kiwifruit grower and post-harvesting operator surged 22% to $2.80 after it kept its forecast for earnings growth in the first nine months of the year in spite of the Psa outbreak. It expects to post earnings before one-off items of between $11.5 million and $12.5 million in the period.

Tower (TWR): The insurer and wealth manager controlled by Guinness Peat Group lifted its full-year profit 16% to $57.6 million as its life and general insurance units lifted their performance. The company's investment arm reported a reduced profit as it restructured its business. The shares rose 1.1% to $1.91.

Theme of the day: Stocks were closed on Wall Street for America's Thanksgiving holiday while Europe's Stoxx 600 rose 0.5% to 267.72. Investors continued to scrutinise Ireland's bail-out package, with Clearnet lifted margin requirements on Irish bonds to 45% from 30%, the third such increase this month. The kiwi recovered from a month-low, rising to 76.07 US cents from 77.51 cents yesterday.

BusinessDesk.co.nz

Comments from our readers

On 26 November 2010 at 11:34 am Jack said:

Fisher & Paykel Appliances ---Todays share price drop ---what kind of rubbish is this --FPA report a profit for the 6 months and the price drops 13%, no wonder investors would be just dumbstruck at this market stupidity--a good buying opp I'd say.