Stocks to watch: Fletcher Building, Infratil, Postie Plus

Monday 12th July 2010

Fletcher Building shares have been rated as a good buying opportunity by First NZ Capital, Infratil appoints a new head for Kent International Airport and Kathmandu founder Jan Cameron increased her shares in Postie Plus.

Fletcher Building (FBU): The construction company is rated ‘outperform’ by First NZ Capital analyst Kar Yue Yeo, according to ShareChat. Fletcher is leveraged to the New Zealand building recovery though there may be a six-month plateau, he said. "We remain comfortable that weakness in Fletcher's stock price represents a buying opportunity on a 12-month view," he said. The shares were unchanged at $7.75 on Friday, compared to his 12-month target price of $9.50.

Infratil (IFT): The investment group appointed former London City Airport executive Charles Buchanan to be head of Kent International Airport after the departure of former chief executive Matt Clarke.

Postie Plus (PPG): Jan Cameron, the cashed-up founder of the Kathmandu chain, increased her holding in clothing chain Postie Plus to 19.2% from 17.8%. The shares climbed 6.7% to 32 cents on Friday.

Sky Network Television (SKT): New Zealand’s largest pay TV operator on Friday announced that it had acquired outside broadcast operator OnSite Broadcasting (NZ) from Prime Media Group of Australia for $13.5 million. The stock rose 1.7% to $4.72 on Friday.

Telecom (TEL): The phone company reached a $1.7 million settlement with the Commerce Commission over three loyalty offers from its wholesale unit that were deemed likely to breach its operational separation undertaking. Each breach could potentially have incurred a fine of $10 million. The shares rose 2.7% to $1.87 on Friday.

Themes of the day: Wall Street rounded out is biggest weekly gain this year amid speculation companies are set to post robust second-quarter earnings, lifting the Standard & Poor's 500 Index by 5.4%. Locally, data out this week includes retail sales for May on Wednesday and the consumer price index for the second quarter, due on Friday. Property values eased for a second month in June, according to QV Valuations. Values were 5.2% higher than the same month in 2009, retreating from the year-on-year gain of 5.6% in May.

Businesswire.co.nz

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