Stocks to watch: AIR, ALF, FPA, NZS, TTK, WDT

Stocks to watch: AIR, ALF, FPA, NZS, TTK, WDT

August 24 (BusinessDesk) – 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: U.S. equities were mixed as takeover activity did little to stem lingering concern about the global economic outlook. The Standard & Poor’s 500 Index fell 0.4%, touching a five-week low. Statistics New Zealand is set to release data on international visitor arrivals for July. In June the number of overseas travelers landing in New Zealand rose 7.9% to 10,663, snapping two months of declines. The New Zealand dollar last traded at 70.61 U.S. cents, after declines in European and U.S. equities sapped some of the currency’s momentum overnight.

Air New Zealand Ltd. (AIR): The national carrier will benefit from Virgin Blue’s announcement last week that it would exit New Zealand domestic routes to curb losses, Moody’s Investors Service said yesterday. Its departure “will ease what had been cut-rate competition and support profitability at the remaining two airlines playing the domestic routes – Air New Zealand and Qantas. The stock rose 2.5% yesterday to $1.22.

Allied Farmers Ltd. (ALF): Chairman John Loughlin announced his resignation from the troubled group yesterday. He was also chair of Allied Nationwide Finance, which was placed in receivership on Friday. The shares were unchanged at 3 cents yesterday.

Fisher & Paykel Appliances Holdings (FPA): The appliance manufacturer would struggle to achieve its guidance for full-year earnings if key markets deteriorate, chairman Ralph Waters told shareholders at their annual meeting yesterday. “The board is increasingly concerned about the risk of further deterioration in economic conditions across our key appliances markets,” Waters said. “If these concerns are realized, achieving the full-year forecast will be challenging.” The stock rose about 2% to 52 cents yesterday.

NZ Farming Systems Uruguay Ltd. (NZS): The South American dairy operator urged shareholders not to sell into either the Olam International or Union Agriculture Group takeover offers, at 55 cents and 60 cents respectively, because there is a prospect of a third offer that isn’t tied to control of the company. The stock was unchanged at 63 cents yesterday.

TeamTalk Ltd (TTK): New Zealand's largest mobile radio company is set to release its annual results today. Growth at the company’s broadband subsidiary CityLink Ltd. is expected to have eased off, offset by a marginally better performance by its radio business, according to Forsyth Barr analyst Andrew Harvey-Green. Shares were unchanged yesterday at $2.05.

Wellington Drive Technologies Ltd. (WDT): The North Shore-based manufacturer of highly efficient electric motors is set to release its interim results today. The company is expected to deliver strong volumes and sales growth, according to Forsyth Barr analyst Andrew Harvey-Green. He said, however, that gross margins will in the spotlight in order to “provide confidence that profitability is coming”. Shares were unchanged yesterday at 9.5 cents.

(BusinessDesk)

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