Why Tyro (ASX:TYR) and SeaLink (ASX:SLK) share prices could be moving up

Two fledgling ASX companies received massive news, which could rouse investors into buying up their stocks.

| More on:
SeaLink Travel Group CEO Clint Feuerherdt

Image source: SeaLink

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tyro Payments Ltd (ASX: TYR) and SeaLink Travel Group Ltd (ASX: SLK) shares will be in focus this week. 

This is because, after market close last Friday, both companies were named as joining the exclusive S&P/ASX 200 Index (ASX: XJO) club later this month.

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 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."

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »