Stocks to Watch: Air NZ outlook, Telecom price cut

Stocks to Watch: Air NZ outlook, Telecom price cuts

April 6 – The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: The U.S. unemployment rate worsened to 8.5%, as expected. U.S. stocks edged higher on relief the jobs figures weren’t even worse. Research in Motion, maker of the Blackberry, soared on the company’s profit forecast.

Air New Zealand Ltd. (AIR): Paymark, the nation’s largest provider of electronic transaction, recorded a 14% fall in travel-related sales for the month of March. With the month typically busier for the tourism sector, chief executive Simon Tong speculated New Zealanders are giving up their holiday plans, or travelling locally. Shares in the national carrier rose 4.3% to 96 N.Z. cents in trading last Friday.

Apple Fields Ltd. (APF): The company, once an orchardist then a property developer, said it has received a Property Law Act demand under its guarantee to a part-owned affiliate. Takamatua West Ltd., two-thirds owned by Apple Fields, is in default of its mortgage to St Laurence Lending. Takamatua is currently seeking legal advice, it said. Still, the parties are holding off while they try to negotiate repayment. The shares last traded on April 1 at 4 cents.

New Zealand Oil & Gas (NZO): The oil company said it had NZ$212 million cash on hand as at Dec. 31 and zero debt. The company is targeting “sensible and value adding investments” in exploration and production, chief executive David Salisbury said in presentation slides for a speech in Sydney today. The stock closed the week unchanged on NZ$1.37.

Ryman Healthcare (RYM): The retirement village operator said it is “continuing to trade well” and is tracking towards meeting or exceeding first-half earnings in the second half, as it predicted in November. Demand “remains strong,” chairman David Kirk said.

Telecom Corp. (TEL): The country’s largest listed company has angered rivals Vodafone NZ and Orcon Internet Ltd. by slashing its wholesale broadband price 23% to NZ$50 per connection per month, the New Zealand Herald reported. Vodafone spokesman David Diprose said his company could only take advantage of any discount if it stopped circumventing Telecom’s wholesale arm by using its own “Red Network”. The stock gained 1.3% to NZ$2.40 in Friday’s trading.

(Businesswire)

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