Seven New Zealand Stocks to Watch

by: Stockerblog

Here are some interesting facts about New Zealand:

1. It is ranked 20th on the 2006 Human Development Index.
2. It is 15th on The Economist's 2005 world-wide quality-of-life index.
3. It exports almost 28% of its output.
4. It is ranked number 40 in terms of GDP per capita.
5. It is number 41 in terms of lowest unemployment rate of all countries, which is only 3.7%, the second lowest of the twenty-seven OECD nations.
6. Its inflation rate is only 3.8%.
7. It has a Political freedom rating of 1 for both political rights and civil liberties.
8. It has a literacy ranking of 1, with 99.9% of its population being literate.
9. It is ranked the least corrupt on the Corruption Perceptions Index.
10. It is ranked number 2 on the Global Peace Index.

Here are some New Zealand stocks worth reviewing:

  • Telecom Corp. of New Zealand Ltd. (NZT) , provides land line and wireless telecommunications services, Internet services, and directory publications in New Zealand, and Australia to residential and business customers. The stock, which trades on the New York Stock Exchange, has a P/E of 17, a P/S of 1.55, and pays a nice yield of 5.1%. The company just reported its annual earnings for the year ended June 30, 2007. Its operating revenues increased 1.2%. The adjusted EBITDA dropped 3.6%, and its adjusted net earnings went up by 16.5%. The stock dropped almost 7% on the news.
  • Air New Zealand (OTC:ANZFF), is an Auckland-based major passenger airline, which serves Australia, New Zealand, the South Pacific, Europe, North America and Asia. For the latest reported six month period, net profit increased by 61 percent. It just increased its dividend by 20%.
  • Auckland International Airport (OTCPK:ACKDF), is the largest and busiest international airport in New Zealand. It is the it is the fourth largest airport in the Australia/ New Zealand area. Its revenues were up about 1.1%, and net income was almost unchanged.
  • Comvita New Zealand (OTC:CVNZF) manufactures honey, and health products. The company just reported that a patented advanced wound care dressing that it developed has become the first honey-based product for the management of wounds, and burns to receive marketing clearance from the U.S. Food and Drug Administration. It reported sales up 10% for the latest reported period over the same period last year, and that exports were also up 17%.
  • Windflow Technology Ltd. ADR (OTC:WFLWF), which is based in Christchurch, New Zealand, designs, develops, manufactures and markets wind power turbines. Its revenues for the latest reported six months were up 663%, however, its net deficit increased by about 5.2%. The stock rarely trades in the U.S.
  • Contact Energy (OTC:COENF), is an electricity generation, and electricity retailing company that provides 25% of the New Zealand electricity. Its operating revenues were down 32.8%, and its net profit was also down about 16.1%.
  • Fisher & Paykel Appliances Ltd (OTC:FPAHF), is an Auckland-based major appliance manufacturer. Its revenues for the latest reported year were up 16.7%, and its net profit dropped 4.4%.
  • Disclosure: The author does not own any of the above.