Tuesday, October 6, 2009

Stock of the Week: NZ Refining Ltd

Chart forNew Zealand Refining Co Ltd (NZR.NZ)

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


Stock of the Week Series

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c Share Investor 2009

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