Stocks to watch: Allied Farmers, Farming Systems, LME, TEL

August 10 (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 credit and debit card spending in July will provide the latest evidence of consumer spending, a part of the economy that has remained subdued as households deleverage and kiwis fret about job security. Shares rose on Wall Street in subdued trading ahead of the Federal Reserve’s policy meeting, amid speculation the U.S. central bank may renew efforts to stimulate the world’s biggest economy.

Allied Farmers Ltd. (ALF): The finance company which bought the Hanover debt book last year tumbled 22% to 3.5 cents yesterday after the company put plans to raise $19.3 million on hold because its Allied Nationwide Finance unit breached its trust deed, forcing it to pull its prospectus. The parent company disputes the breach and the finance unit’s accounts are currently being audited.

Fisher & Paykel Healthcare Corp. (FPH): The medical equipment manufacturer rose 1.4% to $2.94 yesterday on indications of better market prospects after its leading competitor, ResMed, reported a 30% jump in full-year earnings and a two-for-one stock split.

L&M Energy Ltd. (LME): The company's oil and gas programmes are moving successfully forward with enough funding to complete its coal seam gas (CSG) pilot in late 2010, according to John Kidd, an analyst at McDouall Stuart, ShareChat reported. Since March L&M has drilled three of its six CSG permits, two of which encountered coal deposits. The stock traded unchanged yesterday at 11 cents.

NZ Farming Systems Uruguay (NZS): The South American dairy farm operator, which is facing a takeover bid from Olam International (Olam) at 55 cents a share, has advised shareholders not to sell. The board said it will be releasing advice to shareholders on August 23, when the company releases its annual results. The shares were unchanged yesterday at 55 cents.

New Zealand Oil & Gas Ltd. (NZO): Shares in the oil and gas exploration and mining company could be set for a boost as oil rose for the first time in four sessions on expectations that the Fed might signal its readiness to print more money to support the faltering U.S. economic recovery. U.S. crude for September delivery rose 31 cents to US$81.01 a barrel at 1.25pm EDT. The stock was unchanged at $1.21 yesterday.

Telecom Corp. (TEL): New Zealand’s largest phone company climbed 3% to $2.08 yesterday on speculation it will find a way to participate in the government’s rollout of high-speed broadband. Telecom is “looking much more likely that they will be able to put in a bid for the government’s fibre rollout,” said Craig Brown, senior investment analyst for ING New Zealand Ltd.

(BusinessDesk)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>