Stocks to watch: New Zealand equity preview

Thursday 16th October 2008

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: Stocks in the US and Europe tumbled amid rising speculation the global economy will slump as the US looks headed for recession. New Zealand's dollar fell against the US dollar and the yen. Crude oil fell to a 13-month low.

Dominion Finance Holdings (DFH): The finance company today said it appointed John Cregten and Andrew McKay of Corporate Finance as company administrators. The stock last traded on October 8 at 1 cent and has lost about 100% of its value in the past year.

Ebos Group (EBO): The medical equipment distributor is "bullish" about future prospects and has the resilience to cope with the economic downturn, managing director Mark Waller said in the company's annual report, released to the NZX today. The shares rose 3 cents to NZ$4.38 yesterday and have declined 16% this year.

ING Property Trust (ING): The property investor yesterday said it sold its Woolworths building in Taupo for NZ$8.6 million, which was its book value as at March 31. The Trust is negotiating the sale of a number of non-strategic assets across its portfolio, it said. The trust's units were unchanged yesterday at 66 cents and have dropped 36% this year.

TeamTalk (TTK): The company predicted "a modest increase in revenue and profit" in 2009 to a record, according to its annual report released yesterday. It is well positioned to ride out current volatility, it said. TeamTalk fell 1.2% to NZ$2 and is little changed this year, while the NZX 50 Index has dropped 25%.

Telecom Corp. (TEL): The biggest company on the benchmark index sunk 5.8% to a 16-year low of NZ$2.43 yesterday after lowering its 2009 earnings forecast because of costs to roll out its 3G services fast enough to beat rival Vodafone. Separately, the Australian Financial Review today reported that Telecom has pulled out of a group bidding to build Australia's national broadband network.

Windflow Technology (WTL): The company that makes turbines for wind farms said it raised NZ$$3.2 million from the exercise of options and private placements at NZ$3.30 a share, bringing total funds raised to NZ$8.2 million. The manufacturer had planned to raise NZ$10.6 million though it said the uptake was a good outcome given the dive in stock markets. State-owned Mighty River Power Ltd will now purchase a 19.95% stake in the company. The stock traded at NZ$2.90 yesterday and has fallen 10% this year.

By Jonathan Underhill

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