Stocks to watch: Ebos, Hellaby, Telecom

Friday 18th September 2009

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

Themes of the day: Shares on Wall Street snapped a three-day rally and the kiwi dollar slipped from a 13-month high, while holding its gains this month at around 3.5%. The kiwi was recently at 71.02 US cents. Investors are awaiting an announcement from Fonterra Cooperative on how the nation’s biggest exporter will restructure its capital.

Ebos Group (EBO): The stock is rated ‘accumulate’ by Forsyth Barr analyst John Cairns, according to the ShareChat website. Cairns raised his forecast for 2010 earnings after a meeting with company executives, and now expects net profit of $22.6 million, up from his previous forecast of $20.8 million. The medical equipment and supplies distributor “is well positioned to pursue further acquisitions” with gearing of 19.2%, he said. The shares fell 5 cents to $6 yesterday.

Goodman Property Trust (GMT): The trust’s manager, Goodman (NZ), said Ingram Micro has committed to a new development at its M20 Business Park in Wiri, Auckland. Ingram will take warehouse and office facility totalling 10,355 sqm, in the third design build project at the park, it said. The development has a project cost of $12.7 million, providing an initial yield of 9%, it said. The shares rose 1% to 99 cents yesterday.

Hellaby Holdings (HBY): The diversified investment group said in its annual report yesterday that it expects “significantly improved earnings” for the coming financial year after operating profit shrank to $7.4 million in 2009, a third of its 2008 result. Market conditions have remained “very difficult in the agricultural, equipment and retail sectors” in the first two months of the new year. Still, “there is a sense that the worst of the economic downturn might soon be over.” The shares surged 8% to $1.75 yesterday.

Nuplex Industries (NPX): The specialty chemicals company said it cancelled its senior managers’ 2004 and 2007 incentive scheme. “Having regard to the movement in share markets generally during the previous twelve months, it is clear that our share-based incentive schemes have become obsolete, chairman Ron Aitken said. The shares rose 2 cents to $2.39 yesterday.

Pike River Coal (PRC): The coal miner climbed 2.1% to 98 cents yesterday. BHP Billiton, the world’s biggest mining company, said it expects the surge in demand for coking coal in China to be sustainable, boding well for global prices including the premium coking coal Pike will produce from its South Island mine.

Telecom Corp. (TEL): The phone company has complied with all its Telecommunications Service Obligations quality measures for the 2008/09 financial year, the Commerce Commission said today. The measures include line connect speed capacity for standard internet calls, unsuccessful residential call attempts and 111 (emergency) calls. The shares rose 6 cents to $2.74 yesterday.

Businesswire.co.nz

Comments from our readers

No comments yet