Stocks to watch: Air NZ, Restaurant Brands, Allied Farmers, NWF, Sky TV, SEK

Thursday 8th April 2010

Restaurant Brands' shares jump to an eight year high, while Windfarms moves into 'clean-up' mode. Failed EFTPOS company Plus SMS and Botry-Zen, the biotech company that was sent to the receivers, have both been delisted from the stock exchange.

Air New Zealand (NZX: AIR ): The national airline’s earnings should improve on the back of an improving trend in global travel, it’s improving long-haul yields, the 2011 Rugby World Cup and the launch of its new interior on its B777-300 this November said Forsyth Barr analyst Rob Mercer in ShareChat. “Air New Zealand’s product offering and the flexibility in its business has been its key point of difference throughout the challenges it has faced over the past few years,” Mercer said. He forecasts the airline’s net profit will rise from $21 million in June 2009, to $101 million this year, $187 million in 2011 and $240 million in 2012. Its shares rose a cent yesterday to $1.39.

Restaurant Brands (NZX: RBD ): KFC contributed most of the profit growth at the fast foods businesses operator, as full year profits jumped 70% to $19.9 million last year. Total revenues for the year to February 28 rose 2.8% to $318 million, while same-store sales were up 6.8%. The 85-store KFC contributes well over two-thirds of revenue and its sales grew 5.5% to $223 million during the year. Its share price closed seven cents higher at $2.10, an eight year high.

Allied Farmers (NZX: ALF ): The Hanover board waived a $20 million guarantee against a loan on a crippled Fiji resort development days before Hanover investors were due to vote on the merger with Allied Farmers, said Jenni McManus in The Independent. Allied Farmers chief executive Rob Alloway who now runs the merged Allied-Hanover entity says he knew nothing about the waiver till after the merger vote. Allied shares fell 3.3% yesterday to $0.06.

New Zealand Windfarms (NZX: NWF ): The Manawatu windfarm operator is mopping up outstanding issues around possibly faulty turbine designs and landowner issues at its Te Rere Hau site. It is confident it will come through a period of severe financial strain, alleviated by a $34 million eight-for-three cash issue, approved by shareholders yesterday. Its shares remained at 92 cents yesterday.

Seeka Kiwifruit Industries (NZX: SEK ): The country’s largest kiwifruit grower doesn’t expect its share in an about to be written off bacterially infected Italian orchard, to impact on its expected earnings for the March year. The current kiwifruit harvest has got off to an earlier than usual start, and the company expects to finish packing in August. Its shares remained unchanged yesterday at $3.00.

Sky Network Television (NZX: SKT ): The pay TV operator has confirmed agreement has been reached with the NZ, Australian and South African rugby unions extending its broadcast arrangements for five years from 2011 to 2015. Its shares remained unchanged overnight at $5.34.

Economic themes of the day: Global equity markets took a hit amid the re-emergence of fears over the state of Greece's books after the Mediterranean nation's banks asked for more cash.

Still, the New Zealand dollar held yesterday's gains as investors became more bullish about the economy with the 21% jump in dairy prices on Fonterra's online auction.

The world's largest dairy exporter dominated the headlines yesterday after it put forward a new capital structure proposal to farmers that would allow them to trade shares amongst themselves, whilst also opening up an avenue of investment in a fund with arm's length exposure to Fonterra for public and institutional investors.

Businesswire.co.nz

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