Stocks to watch: Freightways, Telstra, Warehouse

Monday 14th September 2009

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

Themes of the day: Shares on Wall Street snapped five days of gains on Friday, with the Dow Jones Industrial Average slipping 0.2%. The New Zealand dollar reached 70.70 US cents in New York.

Freightways (FRE): The courier company is rated a ‘buy’ by Goldman Sachs JBWere analyst Marcus Curley, according to the ShareChat website. Investors are underestimating Freightways’ capacity to bolster earnings as the economy revives, he said. Curley increased his discounted cashflow valuation to $4.50 a share from $4.30. The shares rose 0.3% to $3.18 on Friday.

Genesis Research and Development Corp. (GEN): The company developing gene silencing technology said there has been no progress in settling a debt owed by Pure Global Power, which has instead made counterclaims as has a Canadian developer of biofuel. Genesis said it rejects the claims, according to its interim report. The shares last traded at 9 cents on September 7.

Hellaby Holdings (HBY): The diversified investment group on Friday said chairman Bill Falconer will retired in November after 14 years in the role. The company didn’t immediately announce a replacement. Hellaby shares climbed 6% to $1.59.

New Zealand Oil & Gas (NZO): US crude for October delivery fell US$2.82 to US$69 a barrel on Friday on the New York Mercantile Exchange. The shares were unchanged at $1.61 on Friday.

Orion Minerals Group (OMG): The company created as a New Zealand listing vehicle for iron ore developments in South America said a subsidiary has acquired a special purpose vehicle in Chile that holds a 13-year lease to exploit a mining prospect called Resguardo. Initial indications are that Resguardo may be easier and more economical to mine than OMG’s existing Javiera prospect, it said in a statement. The shares traded infrequently and were last at 25 cents on September 10.

Telstra Corp. (TLS): Australia’s biggest phone company on Friday reiterated its prediction of low single-digit percentage growth in sales and earnings. The carrier said market conditions remain “challenging,” according to its annual report. The shares fell 0.3% to $4.03 on the NZX on Friday.

Warehouse Group (WHS): The retailer’s climbed 5.2% to $4.25 on Friday, the highest close since June 25, after it announced a special dividend, control of inventory and costs, and a wider margin at its Red Sheds. “There’s no doubt some of the things they put in place a few years ago are starting to pay off,” said Shane Solly, portfolio manager at Mint Asset Management. “The dividend was a bonus.”

Businesswire.co.nz

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