Share Price Alert: New Zealand Refining Ltd 4 (UPDATE)

New Zealand Refining Ltd [NZR.NZX] we last looked at this stock back on July 5 2011, since then it has been higher than its current price of $2.47 certainly higher than its recent low of just about $1 and a half coming up around 16 months ago but this gem is set to rocket when things fall into place.

Get this if your going to buy it Monday, you will get it for just shy of its net tangibles which are, according to ASB Securities $250.01 per share.

There are so many variables as to when to buy this share; the price of oil, the US/NZ dollar cross, the refining margin, what the company is spending at present on capital expenditure and what the company pays you in divs.

You cant get it for less than its asset backing though, but in this case you can.

I myself am going to put a few shekels down on Monday, its the only share on the NZX I think is worth buying.


*currently my buy is in at $2.45, I won't go higher . Its up 8c on low volume. 


NZR @ Share Investor

Share Price Alert: New Zealand Refining Ltd 2
Share Price Alert: NZ Refining Ltd
Share Investor's 2011 Stock Picks 
Stock of the Week - Reprise: NZ Refining Ltd
Chart of the Week: New Zealand Refining Ltd
Stock of the Week: NZ Refining Ltd

Discuss NZR @ Share Investor Forum
Download NZR Company Reports

 Think Bigger, By Michael Hill

c Share Investor 2016

Stock of the Week - Reprise: NZ Refining Ltd

New Zealand Refining Ltd [NZR.NZX] has continued to have a lacklustre financial performance since we last visited back in June of this year. Its half year profit for 2010 was down 26% on the 2009 result.

Since June though the stock has rallied in price from $3.10 - reaching a 52 week low of $2.90 in July - to close yesterday at $3.66 after reaching a high of $3.75 in early October.

NZR management have said themselves that the company remains under pressure from uncertain refining margins and a stagnant oil price, so the only possible reasons for the share price rise are the reinstatement of a dividend and a general improvement of NZX share prices.

The current dividend of 2c is historically low for the company and generally they have been paying a good 10% plus gross yield for most of the last decade.

If you can calculate that the global oil price is set to soar (it will but just when is another question) soon then the current share price is a good place to buy.

Clearly if you see the stagnant financial position continue because of a constant oil price at present levels then the NZR share price will come under pressure if profit does not improve.

Since the share price has increased by more than 15% since June it might be worthwhile selling if you are a short term holder.

Long term investors might seize the opportunity to buy on further weakness.


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NZR @ Share Investor

Chart of the Week: New Zealand Refining Ltd
Stock of the Week: NZ Refining Ltd

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c Share Investor 2010

Stock of the Week: NZ Refining Ltd

The New Zealand Refining Ltd [NZR.NZ] company has had a tough-ish year -PDF docs available via download. Refining margins and oil prices have been down and there is some uncertainty over where prices are headed in the future but long term the company remains a good investment.

With a share price rolling between 52 week low of NZ$4.51 and high of $7.65 and a closing price of $4.86 today, there is a good opportunity for investors with some cash to get in on the cheap.

The company share price took a big hit back in August when it announced at its 2009 HY profit result it wasn't paying a dividend and its share price dropped over $2 in a week or so. It also halted production in September and announced that a loss was going to be a strong possibility in the second half of the year.

The dividend yield has previously been an outstanding one with well over 10% gross returns and one could expect a resumption to those once the second half is completed.

The bad news isn't going to last and I will be putting on my watchlist to see any further share price weakness.

Good Luck!


NZR @ Share Investor

Share Price Alert: New Zealand Refining Ltd 2
Share Price Alert: NZ Refining Ltd
Share Investor's 2011 Stock Picks 
Stock of the Week - Reprise: NZ Refining Ltd
Chart of the Week: New Zealand Refining Ltd
Stock of the Week: NZ Refining Ltd

Discuss NZR @ Share Investor Forum
Download NZR Company Reports

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c Share Investor 2009