Stocks to Watch: Briscoe profit outlook, Fletcher

Stocks to Watch: Briscoe earnings outlook, Fletcher

May 1 – The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: Chrysler LLC filed for bankruptcy protection, opening the door to a reorganisation that will bring Italy’s Fiat on board as a partner and shed debt. Shares on Wall Street shed earlier gains.

Austral Pacific Energy Ltd. (APX): The oil and gas company agreed to a demand by major creditor Investec Bank (Australia), owed about US$16.9 million, that a receiver be appointed. The move follows the expiry of a previously announced standstill arrangement. The receivers are Michael Ryan and Ian Francis of Taylor Woodings in Perth and Paul Sargison of Gerry Rea Partners in Auckland. The NZX-listed shares last traded at 6 cents on April 27.

Briscoe Group Ltd. (BGR): The retailer posted a drop of just 0.1% in first quarter sales to NZ$90.2 million, or down 0.9% on a same-store basis. The company widened its gross margin. First half profit is likely to be ahead of the year-earlier period, managing director Rod Duke said. The shares rose 3 cents to 82 cents yesterday.

Fletcher Building (FBU): New Zealand’s biggest construction company rose 5% to a two-week high NZ$6.70 yesterday, when it announced an additional NZ$20 million of capital raising via its top-up facility because of stronger-than-expected demand. “It’s a good company, well managed, with a great set of assets,” said Craig Brown, equities manager at ING New Zealand Ltd. “We’re starting to see signs coming out of the U.S., out of Australia, even New Zealand that maybe the residential market is starting to stabilize.”

Hallenstein Glasson Holdings (HLG): The retailer yesterday announced the departure of James Whiting, chief of its Glasson women’s apparel chain. He will be replaced by Di Humphries, who had formerly held the role before leaving to raise her children. She has remained on the retailer’s board. The stock rose 0.8% to NZ$2.56 yesterday.

Tower Ltd. (TWR): Forsyth Barr analyst John Cairns Cairns forecasts Tower will post a 4.4% increase in net profit to NZ$42.3 million this year and lift 2010 earnings to NZ$44.3 million profit in 2010, the ShareChat website reported. The insurer is in a sound financial position and has embarked on a two-year, NZ$30 million upgrade of its insurance and health and life technology. The shares rose 4.6% to NZ$1.36 yesterday.

Turners Auctions (TUA): The vehicle and general goods auction business lifted first-quarter profit by 58%. Imports of used cars from Japan had declined though Turners is also gaining stock from car dealers going out of business, chief executive Graham Roberts told shareholders at their annual meeting yesterday. Turners is likely to close some of auction centres as more customers by vehicles via its website, he said. The shares jumped 7.7% to 70 cents yesterday.

(Businesswire)

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