Stocks to watch: BTU, CCC, CHA, ECO, PFI, WFD
Aug. 9 (BusinessDesk) – 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: Today's release of electronic card spending for July will take a back seat to global economic concerns, with all eyes locked in global markets which plunged in response to the downgrade of the U.S. credit rating. On Wall Street, the Standard & Poor’s 500 Index plummeted 6.6% to an 11-month low of 1,119.68, Europe’s Stoxx 600 Index tumbled 4.1%, and the 19-commodity Thompson Reuters Jefferies CRB Index dropped 2.8% to 317.74. Gold rose to a new record US$1,712.39 an ounce and yields on 10-year Treasuries plunged to a two-year low of 2.32%.
Bathurst Resources Ltd. (BTU): The coal miner looking to launch an opencast operation on the West Coast said it expects to hear the results of its resource consents hearing by Aug. 26. The company’s shares fell 3.2% yesterday to $1.22 today.
Cavotec MSL Holdings (CCC): The global engineering group has announced the successful renegotiation of a 50 million euro term loan and revolving credit facilities with a syndicate of European banks. The agreement extends the maturity from 2012 to 2016 at improved pricing and includes an option to increase the facilities up to 80 million euros. CCC shares were unchanged yesterday at $2.66.
Charlie's Group (CHA): Asahi Group is now controls 86% of the juice and soft drink maker's shares, putting it within spitting distance of achieving its 90% target level. The Japanese brewer is offering 44 cents for each Charlie's share, valuing the company at $129 million. CHA shares were unchanged yesterday at 44 cents.
Ecoya Ltd. (ECO): The listed candle maker and cosmetics company said it is confident of achieving its revenue forecast of $20 million for the full year after booking $6 million of revenue in the first four months to July 31. The company had previously notched up revenue of $14.3 million in the year to March 31, 2011, up from a forecast of $7.9 million. ECO shares fell 2.1% yesterday to 92 cents.
Property For Industry Ltd. (PFI): The property investor said rentals for the six months ending June 30 were 4.7% lower at $15.6 million due to previous property sales totalling $21.5 million. That was partially offset by new revenue from completed developments and recent rent reviews. The company's net operating profit after tax for distribution was down 13.1% to $8.033 million. PFI shares fell 0.8% yesterday to $1.17.
Wakefield Health Ltd. (WFD): The hospital operator looking to buy a controlling stake in Norfolk Investments Ltd. announced that it now has acceptances from shareholder representing 54% of the company’s shares. Wakefield, whose $3.80 a share bid was condition on it gaining a 51% holding in the company, fell 2.9% yesterday to 15 cents.