Stocks to watch: IFT, LME, MHI, NZO, PEB, PLU

Stocks to watch: IFT, LME, MHI, NZO, PEB, PLU

July 27 (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: Better-than-expected sales of new U.S. single-family homes bolstered optimism about the economic recovery, with the Dow Jones Industrial Average rising about 1%. Relief over the results of the European bank stress tests helped push the euro 0.2% higher against the greenback to 1.2923, as the U.S. prepares to auction US$104 billion in notes this week. Overnight the kiwi rose to 73.42 U.S. cents, a six-month high, from 72.95 cents.

Infratil Ltd. (IFT): Morrison & Co., the manager of Infratil, yesterday confirmed it is having a looking at Port of Brisbane, which has been put up for sale by the Queensland government. There has been speculation it may bid in conjunction with the NZ Superannuation Fund. The shares rose 0.6% to $1.63 yesterday.

L&M Energy Ltd. (LME): The energy company announced yesterday that it plans to drill exploration wells in two Taranaki prospects in 2011 and 2012, as well as pushing ahead on coal seam gas opportunities that underpin a share purchase scheme, which opened yesterday. The shares last traded on July 23 at 12 cents.

Michael Hill International Ltd. (MHI): The jewellery retailer yesterday lowered the value at which it transferred its intellectual property to an Australian subsidiary by 6.8% to $274 million, resulting in changes to the transaction’s tax treatment, after concerns raised by the Australian Tax Office. The stock was unchanged yesterday at 70 cents.

New Zealand Oil and Gas Ltd. (NZO): The oil explorer’s bad luck continues, with three wells being dry, costing about three cents a share, Forsyth Barr analyst Andrew Harvey-Green said in ShareChat. Share price falls due to declining oil prices and its unsuccessful drilling campaign have been overstated he said. The company’s 29.4% stake in Pike River Coal is a healthy exposure. Its shares lifted two cents yesterday to $1.24.

Pacific Edge Ltd. (PEB): The Dunedin-based biomedical diagnostics company has been awarded two N.Z. patents for its detection of gastric cancer and for its melanoma prognostic technology. They join patents already obtained for bladder cancer and colorectal cancer prognosis, and the company anticipates more, later stage patents in other targeted countries over the next two years. Its shares dropped three cents yesterday to 22 cents.

Pulse Utilities Ltd. (PLU): The retail electricity supplier will seek up to $5 million from sophisticated investors in a convertible notes issue that will lead into a proposed share purchase plan later this year. The NZAX-listed company says it needs between $1.7 million and $3.5 million as "core funding" for operations, while a further $1.5 million is earmarked for use in expansion projects that the company is assessing. The stock was at 45 cents yesterday and trades infrequently.

(BusinessDesk)

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