Stocks to watch: BGR, MHI, NZX, PGW, PPL, THL

Stocks to watch: BGR, MHI, NZX, PGW, PPL, THL

Feb. 4 (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: The government is set to release travel and migration numbers for December today. Last month's figures showed New Zealand's immigration and visitor arrivals were normalising after the global financial crisis, but the number of kiwis emigrating was still on the rise. Global equities received a boost from stronger corporate earnings and improved U.S. manufacturing data earlier in the week, with the Standard & Poor's 500 Index last up 0.24% at 1307.14, while in Europe the Stoxx 600 Index closed 0.1% higher at 280.0.

Briscoe Group (BGR): The homeware and sporting goods retailer reported marginal sales growth for the year, with stronger performance over the Christmas period helping the company to sidestep general malaise in the wider retail sector. Unaudited sales for the year to Jan. 30 were 0.6% higher than the previous period at $419.3 million, while same store sales for the year were 2.4% higher than in the previous 12-months. The company said it expects net profit for the year to exceed $23 million, about 10% higher than the same period last year. Shares were unchanged yesterday at $1.36.

Michael Hill International Ltd. (MHI): The Brisbane-based jeweller said the recent floods in Queensland and Victoria, along with the cyclone in North Queensland will damp demand for its products for the coming months. It expects earnings before interest and tax to be $45 million in the year ended June 30, down from the January forecast of $49.9 million. Actual earnings were $36.24 million last year. Michael Hill said earnings came in at $32.3 million in the six months ended Dec. 31, the bottom end of its forecast $32 million and $34 million range given last month. The jeweller said net profit rose 7.2% to $23.9 million in the period. Shares were unchanged yesterday at 90 cents.

NZX Ltd. (NZX): The security markets operator said trading activity in January was lackluster, with total trades down 10% to $1.3 billion compared to the same month in 2010, while the volume of transactions fell 1.2% to 35,711. Still, the market's equity capitalisation grew 4.9% to $56.7 billion, or 29.9% of GDP after a year when the NZX 50 outperformed its trans-Tasman counterpart, the ASX/S&P 200. Shares rose 1.1% yesterday to $1.77.

PGG Wrightson Ltd. (PGW): The rural service company facing a partial takeover from Singapore's Agria Corp. said it has received another offer from another party who is looking at making a full takeover offer. Wrightson has advised shareholders to hold onto their shares until the due diligence is completed and a public offer made. Shares were unchanged yesterday at 34 cents.

Pumpkin Patch Ltd. (PPL): The children's clothing manufacturer's earnings guidance for the second half of the year may be overly conservative, according to Goldman Sachs and Partners analyst Buffy Gill, quoted on the ShareChat website. The retailer expects first-half net profit to come in at between $7.5 million and $8.5 million, down between 40% and 47% on the previous first half, and full-year net profit between $16 million and $18 million, down between 30% and 38% on the previous year. Gill downgraded her full-year forecast by 10.1% to $18.4 million, but still above the company's guidance. Shares were unchanged yesterday at $1.49.

Tourism Holdings Ltd. (THL): The camper van rental company which recently took over U.S. company Road Bear said it will not be able to meet it full-year profit guidance, with forward bookings sagging as a result of a spate of natural disasters in Australia and softening tourism markets in New Zealand and the U.K. Net profit is forecast to be a $4 million loss compared to $2.5 million profit previously forecast. Shares rose 1.3% yesterday to 76 cents.

(BusinessDesk)

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