Stocks to watch: ALF, IFT, LME, NZS, PRC, RAK

Stocks to watch: ALF, IFT, LME, NZS, PRC, RAK

August 11 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day: Government figures today on accommodation nights in June will provide insight into New Zealand's tourism industry. Total guest nights for May fell 6%, despite a jump in international vistors to the country over the same period, particularly from Asia. U.S. stocks fell in late trading as investor fears around the pace of recovery in the U.S. dulled news that the Federal Reserve is planning to purchase Treasury securities.

Allied Farmers Ltd. (ALF): The finance company which bought the Hanover debt book last year rose 11% to 3.9 cents yesterday. The company this week has put its $19.3 million equity-raising plans on hold to try to convince the trustee of its Allied Nationwide finance unit that it isn’t in breach of its debt facility.

Infratil Ltd. (IFT): The infrastructure investment company, which owns several airports, electricity generators, retailers, and a public transport business, holds its annual meeting today. The shares were unchanged at $1.62 yesterday.

L&M Energy (LME): The company has drilled three of its six coal seam gas permits, finding coal deposits in two. The shares rose 9.1% to 12 cents yesterday.

NZ Farming Systems Uruguay (NZS): Singapore’s Olam International, which formally launched its takeover bid for the company at 55 cents a share yesterday, said it was “unrealistic” in setting operational targets, and needs significant changes to its strategy. Farming Systems reliance on farm sales is “undesirable and unsustainable” as a source of short-term funding, Olam said. The shares last traded at the 55 cent offer price.

Pike River Coal Ltd. (PRC): The company's fourth-quarter activities report shows that the company is set to burn through $23.3 million in the period, according to the ShareChat website. Andrew Harvey-Green , an analyst for Forsyth Barr, said this rate, coupled with any significant dealys in coal shipments, could mean the company may run out of cash in September. The shares were unchangedat 98 cents yesterday.

Rakon Ltd. (RAK): The manufacturer of navigation components completed the acquisition of French-based competitor Temex. The new business will trade as Rakon Temex until its operations are fully integrated into company’s wider business in several months. Managing director Brent Robinson said the acquisition would help in “growing our revenue in the high performance markets in space, aviation and defence.” The shares fell 1.8% to $1.09 yesterday.

(BusinessDesk)

© Scoop Media