Share Price Alert: New Zealand Refining Ltd 3

When we last looked at New Zealand Refining Ltd [NZR.NZX] back in May 2011 its shares were trading at $4.50 and its prospects at that time were starting to look better as oil prices continued to climb and refining margins increased.

In June 2010 I picked the stock at $3.10 for the same reasons as stated above.

Yesterday the NZR finished trading at $3.72 for the day after reaching $3.50 2 weeks ago and a 52 week high of $5.20 in late February.

It seems the market was not enamored of the NZR Throughput and Margin Report for March-April 2011 out early June which showed that a 10 day outage of some crucial plant impacted on margins. This is a temporary outage though and margins have since been restored.

This is a good opportunity to get in while the stock price is low and even though global oil prices are under some pressure the price per barrel is unlikely to fall much lower considering demand from Asia.

This stock was in the 2011 Share Investor Stock Picks at $3.95.

NZR 5 year margin & throughput report

*A heads up to Share Investor Blog reader Phillip for informing me of the drop in NZR. I would buy Phillip.


Share Price Alert Series

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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 2011

Share Price Alert: New Zealand Refining Ltd

When we last looked at New Zealand Refining Ltd [NZR.NZX] back in October 2010 its shares were trading at $3.66 and its prospects at that time were starting to look promising as the oil price was rising and the company had largely put the expense of its plant shut downs and low refining margins behind it.

In June 2010 I picked the stock at $3.10 for the same reasons as stated above.

Yesterday the shares finished trading at $4.66 for the day (see 3 month chart above), up over 27% over 3 months or 50% from June share price levels.

The shares have traded upwards in the preceding months because of increased refining margins and an increased capacity to refine raw product after the plant upgrade in 2009 - 2010.

Profit has also been tipped to rise because of the favorable trading conditions.

It is likely that NZR will reinstate a larger dividend for the coming profit result and one would expect the share price to head north as global oil prices continue to rise.

This stock was in the 2011 Share Investor Stock Picks at $3.95.

Long term you will do well.


Share Price Alert
Freightways Ltd
Xero Ltd


NZR @ Share Investor

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


Related Amazon Reading


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c Share Investor 2010 & 2011

Chart of the Week: New Zealand Refining Ltd

The aim of this series of charts is to show the divergence - up or down - of the selected individual stock price away from the NZX 50 Index. The chart is a 1 year look to give some relevant background to any recent (two to three months) share price movements.

New Zealand Refining Ltd [NZR.NZ] has had a poor last year share price wise and 2009 half year result.

Over the last two months though the stock has dropped from around $3.80 to close at $3.10 at close of market last Friday. The NZX by comparison has been almost flat.

The current NZR share price is at a 52 week low after being at a high of $7.65 over the same period

If you were a chartist you would say this stock has been over-sold and is ready for a correction.

The company has been affected in the short term by lower refining margins, increased capital expenditure and a suspension of the dividend. This is unlikely to continue for the long-term and the first sign of a resumption in dividend is likely to see this stock surge in price.

Significantly the stock has a $1.92 per share asset backing.

Buy on further weakness or at present levels.


Chart of the Week Series

Mainfreight Ltd
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NZR @ Share Investor

Share Price Alert: New Zealand Refining Ltd 4

Share Price Alert: New Zealand Refining Ltd 3
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

Buy Bird on a Wire: The Inside Story from a Straight Talking CEO 






c Share Investor 2010