ACC among investors topping up on beat-up NZOG shares
Dec. 24 (BusinessDesk) - Trading volumes in New Zealand Oil & Gas Ltd. shares have been the heaviest in two years in the wake of the Pike River Coal receivership, which slashed its market value by 53%.
About 2% of the company, or 8.3 million shares, has changed hands in the past three days. The past month has seen the biggest daily volumes since November 2008.
Accident Compensation Corp., the state-controlled accident insurer, has lifted its stake in NZOG to 6.4% from 5%, according to a statement yesterday. ACC paid 81 cents a share, based on the total price paid for 1.5 million shares.
The shares changed hands at $1.27 before the first explosion at its 29%-owned Pike River mine last month. They were at $1.72 in November last year and NZOG's holding was worth about $103 million prior to the trading halt.
The shares are rated 'outperform' based on the consensus of six analyst recommendations compiled by Reuters.
ACC's substantial security holder notice is the first for NZOG since the corporation's last disclosure in July, when the stock was above $1.20.
NZOG stock is valued at 86 cents, assuming the Pike stake at zero and net of unsecured debt, according to an assessment by McDouall Stuart last month.
The shares rose 1.2% to 84 cents in trading today.