Stocks Ready to buck the trend in the Tech sector- NEA, WTC, TYR, DDR

  • Mar 27, 2020 AEDT
  • Team Kalkine
Stocks Ready to buck the trend in the Tech sector- NEA, WTC, TYR, DDR

Sectoral indices on the ASX have shown a sudden improvement in price movement since the past three days amidst COVID-19 pandemic. When we look at the technology sector, it has delivered a negative YTD return of 27.71%. When we take a look at the graph of the S&P/ASX 200 Information Technology index from 17 February 2020 till 24 March 2020, we can see that the index has registered a considerable dip from 1604.04 to 847.90. However, the sector has bounced back once again from 24 March 2020. On 26 March 2020, the sectoral index gained by 7.44% and settled at 1,016.8.

In this article, we would be looking at four such stocks that have significantly improved performance on the ASX as on 26 March 2020 and the steps that are they taking in the current critical situation to ensure smooth operation as well as safety of their employees.


Nearmap Limited

A significant decline was seen in the shares of Nearmap Limited (ASX: NEA) from 23 January 2020 till 25 March 2020. The stock which closed at $2.62 on 23 January 2020 reached $0.860 on 25 March 2020 and was near its 52 weeks low price of $0.830. On 26 March 2020, the stock showed sudden improvement in price movement and by the end of the trading session settled at $0.995, up 15.698% from its previous close. Around 8,912,422 shares traded on ASX on the day.

On 26 March 2020, the company has released a shareholder update on the current trading conditions during the time of COVID-19 outbreak and the way it is organizing its activities to neutralize the potential impact of the disruption.

As advised by the government, the WHO and the US centre for Disease Control and Prevention, the company has transitioned all Australian and US-based employees to remote work as a part of the business continuity program.

During this time, the company continues to provide services to its clients as usual. It would support its client by providing them with instant access to existing as well as historical aerial derived imagery and content.

At 31 December 2019, the company had available liquidity of $49.6 million. The management is emphasizing on the efficient management of cash resources.


WiseTech Global Limited

The stock of WiseTech Global Limited (ASX: WTC) has delivered a negative YTD return of 46.56%. It slipped significantly in the time frame of 18 February 2020 to 19 March 2020. From 20 March and onwards an improvement was seen in the stock price. The stock which traded at $29.44 on 18 February 2020 reached $10.48 on 19 March 2020 which was near its 52-week low price. On 26 March 2020, the stock soared 10.312% by the close of the trading session and settled at $13.80. Around 1,202,810 shares were traded on ASX on the day.

As for most of the companies, WiseTech has also adopted an approach to tackle the effects of COVID-19. The company has confirmed that its platforms and systems would remain available normally, which includes CargoWise Cloud and related services along with several data centres throughout geographical sites.

The company is fully operational, and it is actively accessing any development related to coronavirus. It has also implemented further key measures in order to protect its well-established business continuity programmes and to lessen the impact on the business as well as on the secure, high-performance supply chain software solutions.

Further, WTC has also assured that it would be dedicated to its clients in order to provide them with support & services at this juncture. Also, the company’s top priority is to keep its people, clients, partners, as well as communities in which it functions safe and healthy.


Tyro Payments Limited

Tyro Payments Limited (ASX: TYR) witnessed a considerable fall in its share price from 5 March 2020 till 24 March 2020. The stock which closed at $3.8 on 5 March 2020 reached $1.07 on 24 March 2020. On 25 March 2020, the shares bounced back and on 26 March 2020, it zoomed up by ~14.29% and settled at $1.64. Around 4,417,304 shares traded on the ASX on the day.

On 25 March 2020, Tyro shared its approach to trading for FY2020. Tyro provides payments and banking solutions to over 32,000 merchants which includes SMEs. Tyro is committed to assist its merchants during the current critical situation.

Looking at the present situation surrounding COVID-19, the company has implemented ways to offer such assistance which probably can support those of its merchants facing difficulties. In this scenario, the company is working on a BAU (business as usual) basis, offering them the different levels of service, availability and support. Also, the company has operational plans to protect the health and safety of its team and simultaneously to preserve the continuity of its payment & banking services to its clients in the present condition.

Seeing the uncertainty related to COVID-19 and its impact on transaction values for payments businesses, the company would be providing transaction value updates on a weekly basis for the remaining part of FY2020.

Tyro confirmed that it has a strong financial position with net cash and cash equivalent of $154 million at the end of February 2020 after exclusion of net banking funds.


Dicker Data Limited

The stock of Dicker Data Limited (ASX: DDR) declined from 21 February 2020 till 23 March 2020. The stock which closed at $6.9 on 21 February 2020 reached $4.10 on 23 March 2020. On 24 March 2020, the stock showed a sudden rebound. By the end of the trading session on 26 March 2020, the shares settled at $5.27, up 12.128% from its previous close. Around 217,687 shares were traded on ASX on the day.

On 25 March 2020, Dicker Data confirmed complete business continuity for ANZ channel during the continuity of coronavirus pandemic. The company assured its reseller customers, vendor partners and associates that it is open for business and is 100% operational in Australia as well as in New Zealand.

Dicker Data is an IT hardware distributor of various prominent brands. It also assured that all its warehouses, as well as distribution centres, would remain functional.

It acknowledged the possible impact of the coronavirus on the vendors as well as its partners. It assured them that the company is positioned well and with complete business continuity for the channel market during the tenure of the coronavirus pandemic.

The company reassured that there would be minimum possible disruption. In case of any such disruption, the experienced & locally based teams would provide the client and the client’s business with a high level of service and customer support.

Apart from this, DDR is following strict health procedures and have a set of precautions in place to ensure that its people stay safe and healthy, including the mobilization of its technical resources and working from a remote location, stretching warehouse operational hours & restructuring of the workforce to lessen risk & circumvent possible delays in fulfilling the orders.

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