Two fledgling ASX companies received massive news, which could rouse investors into buying up their stocks.
The post Why Tyro (ASX:TYR) and SeaLink (ASX:SLK) share prices could be moving up appeared first on The Motley Fool Australia. –
Tyro and SeaLink Travel stocks will enter the index before market open on Monday 20 September.
Aside from the glory, the move could have a material impact on share price for the payments and transport companies.
That can happen due to passive funds that follow the ASX 200 being forced to buy Tyro and SeaLink shares. And when demand rises, so can the price.
Tyro leaves its troubles behind
It’s a stunning turnaround for Tyro, which saw its stock price plummet back in January when thousands of its card payment terminals failed.
That episode forced the company to physically collect “bricked” devices for repair, as they couldn’t fix the bug remotely.
To rub salt into the wound, a short seller then released a stinging rebuke that claimed Tyro was under-reporting the number of affected clients. That instantly cut 12% off the share price before a trading halt was called.
The reputational damage from that disaster now seems to be a distant memory. The share price has gained a net 12.3% over the past 12 months.
Tyro did not comment on its inclusion in the ASX 200.
SeaLink caps off a stunning year
SeaLink had a more linear path leading to its admission into the ASX 200.
Despite COVID-19 pressures, a mix of organic and acquisition growth has sent its stock price 77.7% upwards over the past 12 months.
“Securing a place in the ASX 200 is recognition of the dedicated commitment and collective effort from everyone at SeaLink,” said SeaLink chief executive Clint Feuerherdt.
“Being part of the ASX 200 will provide greater investor exposure, expanded access to capital and a new peer group that will drive us to even higher levels of performance, governance and professionalism.”
Feuerherdt credited the company’s takeover of Transit Systems bus company for diversifying its revenue sources.
“The Transit Systems acquisition has enabled us to reposition the business to be underpinned by approximately 90% contracted and non-discretionary essential transport services.”
“From a mining site, or metropolitan city, to a suburban school run or remote island ferry connection, we understand our customers’ needs and we work tirelessly to deliver efficient and intelligent services tailored to each community that we serve.”
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.