Stocks to watch: Air NZ passengers drop, Charlie's, Sky City

Wednesday 17th June 2009

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

Themes of the day: Stocks fell on Wall Street after a drop in profit at Best Buy Co., the world’s biggest electronics chain, stoked concern consumer spending isn’t reviving quickly. US Commerce Department figures showed housing starts rose to a higher-than-expected annual rate of 532,000, while building permits climbed 4% to 518,000. The New Zealand dollar fell to 62.84 US cents as stocks fell and a measure of volatility of the Standard & Poor’s 500 index rose.

Air New Zealand (AIR): The airline carried 850,000 passengers last month, down 9.9% on the same month of 2008, it said in a statement today. Still, the airline’s capacity was reduced by 13.9% and the passenger load factor increased by 2.2 percentage points. Short haul passenger numbers fell 9.3% while long-haul declined 13.7%. Air New Zealand’s shares fell 4 cents to $1.01 yesterday.

Charlie’s Group (CHA): The juice maker said it has received a number of approaches to buy parts or all of its business over the past few months though it has rejected the proposals. It has retained ABN Amro Craigs for advice on options and is considering raising capital and other options to fund its expansion and reduce debt. The shares rose 4.6% to 11.5 cents yesterday.

Delegat’s Group (DGL): The producer of Oyster Bay wines slipped 0.9% to $2.18 yesterday. New Zealand's wine exports are set to reach $1 billion for the first time this year though a harvest that equaled last year’s record 285,000 tonnes of grapes may result in oversupply that weighs on prices, according to New Zealand Winegrowers.

Michael Hill International (MHI): The jewellery chain plans to launch two fragrance products next year, following the lead of firms such as Italian jeweler Bulgari, founder Michael Hill told a book launch yesterday. The company aimed to strengthen its branding while focusing on the challenges of the US market, he said, according to the NZ Herald. The retailer is rolling out new-look stores in New Zealand this year. The stock was unchanged at 69 cents yesterday and has surged 35% this year.

Sky City Entertainment Group (SKC): The casino operator is rated a “buy” by Forsyth Barr analyst Jeremy Simpson, according to the ShareChat website. Simpson raised his 2010 profit forecast by 2.9% to $118.4 million to reflect lower interest costs. He lowered his valuation on the stock to $3.45 to $3.20. The shares were unchanged at $2.75 yesterday.

Widespread Portfolios (WID): The investment company whose biggest investment is a 6.4% stake in Asian Mineral Resources said the Toronto listed nickel miner raised less than intended from a share placement, resulting in less-than-expected dilution of Widespread’s stake. Asian Mineral said the C$1.05 million raised will help to keep its Ban Phuc project in Vietnam on care and maintenance. Widespread shares fell 8.8% to 15 cents yesterday, on volume of just 5,000 shares. They have gained 70% in the past three months.

Businesswire.co.nz

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