Stocks to watch: September 7

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.

The New Zealand dollar rose against the US currency overnight as better-than-expected economic data from America helped raise the appetite for riskier currencies. The kiwi was last trading at US72.28c, up from US72.13c yesterday.

European stocks advanced overnight amid further signs that the global economic recovery was on track, with the Stoxx Europe 600 Index advanced 0.2 percent to 260.94. US markets open today after being closed for the Labor Day holiday.

Dorchester Pacific (DPC): The finance company told shareholders at its first AGM since its capital restructuring that it expected lending on its motor vehicle book to increase from $13 million a year to about $70 million within the next three years, according to press reports.

Currently the company is lending directly to individuals hoped to use dealer networks to find customers. Shares were unchanged yesterday at 11 cents.

Fletcher Building (FBU): Shares of New Zealand’s biggest construction company rose 5 percent to $8.41 and Steel & Tube Holdings (STU), a manufacturer of materials for the construction industry, rose 1.7 percent to $2.37 on speculation they stand to gain from rebuilding in Christchurch.

Chief executive Jonathan Ling told BusinessDesk he will Christchurch mayor Bob Parker this week though any benefits of residential and commercial rebuilding will be months away.

Hellaby Holdings (HBY): The investment company has turned the recovery corner with management continuing to squeeze more out of the business, said Craigs Investment Partners analyst Selwyn Blinkhorne, quoted on the ShareChat website.

Hellaby's normalised net income for the year ended June rose 66 percent to $8.8 million compared to the previous period, 19 percent ahead of Blinkhorne's forecast. Shares fell 1.1 percent yesterday to $1.83.

Lyttelton Port (LPC): The South Island’s largest port resumed core operations on Saturday after the quake but says it did sustain "significant damage" and the cost of repairs is likely to be tens of millions of dollars. The shares last traded unchanged at $2.40. The company is 78.8 percent owned by Christchurch City Council.

New Zealand Wool Services International (WSI): The wool scourer and exporter reported a normalised after tax operating profit of $2.2 million in the year ended June 30, after turning from a first-half loss to a second-half profit.

"We are on track to achieving a much improved result in the 2010/11 year with better margins in sales, greatly improved stock turn, higher productivity at the scours, much improved cash flow and lower borrowings which after refinancing are less expensive and more secure," the company said.

The stock was last unchanged at 32 cents.

Pyne Gould Corp (PGC): The financial services company announced that its vehicle finance subsidiary Marac Finance Ltd. had secured the rights to promote Holden Financial Services, Holden Finance and Holden Insurance.

The deal builds on Marac’s recent acquisition of GMAC NZ’s (GMAC) retail motor vehicle book. Shares were unchanged yesterday at 43 cents.

Tourism Holdings (THL): The campervan rental company said one of its two Christchurch sites was damaged by the earthquake.

Its secondhand motorhome outlet has been closed and a temporary site set up in with vehicles relocated to that site. The shares were unchanged yesterday at 80 cents.

- BusinessDesk