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The New Zealand Market
CEN
announce on 18th Feb and market forecasts are $180-$190
million .The media are speculating that Contact might return
capital to investors. This will be interesting, as Contact
directors will have to be careful to send the correct message
to the market i.e. we are returning capital but we still have
potential to grow the company. I’m picking Contact directors
could be more conservative than the market believes.
SKY and INL announce on 21st February and are also expected to
comment on the formation of “new SKY “. The Sky / INL
merger picked to see a return of $500 - $700 to shareholders
but the thing that the market may be missing is that post the
merger the pe ratio for the New Sky will be 13- 14 depending
on the return.
This compares very well with the company’s Australian peers,
in short SKY and INL remain a strong hold. I’m picking the
capital return will be at the higher end of expectations.
Another stock to watch is SKC, which continues to go through
the “wash out cycle” where by all the weak holders that
took part in the share placement at $5.20 continue to sell out
after failing to lock in the premium. Any buying below $5.20
could be well rewarded after the company’s next interim
profit announcement due 21st FEB.
New Zealand Oil and Gas holders should visit www.sharechat.co.nz
under Features, Investor interviews. Hopefully our latest 42
Below upgrade report will be available early next week, our 12
month target for FTB is .96 cents.
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