Stocks to watch: Briscoes, Heritage Gold, Kathmandu

Friday 24th September 2010 1 Comment

Briscoe Group has been rated 'outperform' by First NZ Capital, Heritage Gold confirmed it will list one of its investments in November, while Kathmandu is expected to announce full-year earnings today.

Briscoe Group (BRG): The household and sporting goods retailer is rated as "outperform", according to Sarndra Urlich, an analyst at First NZ Capital, quoted on the ShareChat website. Urlich said the company has demonstrated the ability to drive profitability without relying on substantial top-line sales growth in the "fragile and unpredictable" retail sector. When macro conditions do finally pick up, Briscoe's is well-placed to exploit those conditions, she said. Shares rose 1.6% yesterday to $1.30.

Heritage Gold NZ (HGD): The New Zealand-listed exploration company confirmed it will list one of its investments, Broken Hill Prospecting, in November, according to press reports. Broken Hill, which is 33% owned by Heritage, will issue a prospectus next month and look to raise funds for a dual listing on the NZX and ASX. Shares were unchanged yesterday at 2.8 cents.

Kathmandu Holdings (KMD): The outdoor clothing retailer is expected to release its full-year results today. New Zealand consumer confidence has declined further in the June quarter, according to the Westpac McDermott Miller Consumer Confidence, which has put pressure on retailers. Shares rose 2.9% yesterday to $1.77.

NZ Farming Systems Uruguay (NZS): Olam International increased its shareholding in Farming Systems, the South American Dairy operator, to 61% from 56% previously. The Singaporean company said it will not extend its takeover offer, which is due to lapse today. The deal was conditional on Olam securing at least 50%. The shares traded at 69 cents yesterday, 1 cent below Olam's offer.

Postie Plus Group (PPG): The clothing retailer reported at 33% drop in net profit to $415,000 for the 12-months to August 1. Total revenue rose 3% to $113.7 million. The company said tough trading conditions in the retail sector remain a challenge. Shares were unchanged yesterday at 32 cents.

Auckland International Airport (AIA): The country's main gateway reported more overseas visitors last month, as business trips bounce back from a lull in the wake of the global financial crisis. Total international passengers rose 4.5% to 603,995 in August from the same month a year earlier, with business and conference visitors making up 43,706 of those people, up 18% from a year ago. Shares were unchanged yesterday at $2.08.

Themes of the day: Shares on Wall Street were mixed, with an unexpected rise in unemployment benefits contrasting with an improvement in sales of US previously owned homes. In late trading the Standard & Poor's 500 index 0.06%. The benchmark Stoxx Europe 600 Index slid 0.1% to 261.07, as Ireland's economy shrank 1.2% in the second quarter, missing a forecast of 0.5% growth. The kiwi dollar held its ground overnight against the US currency, after dropping half a cent on weaker-than-expected GDP numbers, and was last trading at 72.86 US cents.

Businesswire.co.nz

Comments from our readers

On 24 September 2010 at 11:49 am Don said:

Briscoe Group stock symbol is BGR