Stocks in Green Zone- SCY, TRA, SPY, PYS, NZO

  • Apr 02, 2020 NZDT
  • Team Kalkine
Stocks in Green Zone- SCY, TRA, SPY, PYS, NZO

Impacts of the Covid-19 pandemic are making investors blow hot and cold over investments in the market. The shift between optimism and pessimism in the market has become a constant mood of the investors, thanks to the ambiguity surrounding coronavirus across the globe.

Till last week, some optimism was seen in equity markets and rebound in the markets was also noticed, globally, as the measures to tackle the economic effect of coronavirus like economic stimulus packages were reinforced.

The economic stimulus with enough zeros up the investor confidence that reflected on the favourable position of the markets. However, an alarming message flying right from the White House showered pessimism across the world financial markets.

The S&P/NZX 50 Index dropped 0.56% on 02 April 2020 and settled at 9,870.560 after losing 55.520 points in a single day. Most of the indices on NZX including S&P/NZX All Financials, S&P/NZX All Communications Services, S&P/NZX All Real Estate, S&P/NZX All Health Care and S&P/NZX All Consumer Staples ended the day’s trade in red zone, losing significant points intraday.

Amidst all this pessimism, there are several stocks that have outshone in performance on 02 April 2020 on NZX. Let us discuss these stocks in detail.

Smiths City Providing Limited Products & Services, Resumes Online Trading    

Being a Christchurch-based holding company founded in 1918, Smiths City Group Limited (NZX:SCY) is a successful and profitable retail trading operation with considerable brand recognition, operating stores in high-profile locations across New Zealand.

Amidst the government guidelines aimed at giving public access to essential goods, the Company is currently offering a limited range of its products and services to the public and commercial customers.

The Company had sought to begin taking orders through the online mode starting from 31 March 2020, as none of its physical stores would be open to the public. However, some of its stores and distribution centres located in Christchurch and Auckland may be used to suffice the online orders.

The SCY stock was amongst the stocks that managed to end up in the green zone. The stock went up by 9.09% intraday on 02 April 2020 and settled at a price of $0.120.

FY20 Performance Within Previously Stated Outlook for TRA

Incorporated through the merger of Turners Auctions and Dorchester Pacific in 2014, Turners Automotive Group Limited (ASX:TRA) is focused on delivering integrated services to its customers by offering strength in key areas of automotive retail, finance and insurance and debt management systems. Turners Auctions was New Zealand's largest vehicle and machinery retailer while Dorchester Pacific was known to be a leading consumer finance and insurance business.

TRA provides its services through several brands that include EC Credit Control, Autosure, Oxford Finance, Turners Group NZ and DPL Insurance Limited.  

Notwithstanding the currently prevailing strong disruptions in the market, TRA’s business is expected to achieve the FY20 results within previously stated guidance of $28 million to $30 million for net profit before tax.

Moreover, the business was expected to achieve the higher end of the guidance until the coronavirus outbreak began having an impact on the business environment. Although current businesses are expected to be on track, the 1H21 is likely to be adversely influenced by the Covid-19 impacts.

Though impact on the businesses remains immeasurable in the current scenario, the Company benefits from being a purposefully diversified business with different business cycles.

The TRA stock surged 7.41% intraday on 02 April 2020 and settled at a price of $ 1.450.

SPY Quarterly Revenue Up 38%

Being an EFTPOS and mobile payments technology solutions provider, Smartpay Holdings Limited (NZX:SPY) is the largest independently owned and operated EFTPOS provider in New Zealand and has delivered over 35,000 EFTPOS machines to more than 25,000 merchants across New Zealand and Australia.

The Company has witnessed continuing strong growth in revenue, driven primarily by Australian terminal and acquiring volume growth during the quarter ended 31 December 2019. SPY has touched a 38% jump in quarterly revenue as compared to the same quarter last year.

At the end of December 2019, the Company had an Australian acquiring terminal fleet of 4,148 and SPY remains on track to achieve sales forecast of 2,500 terminals in Australia during this FY.

The SPY stock increased by 4.92% intraday on 02 April 2020 and closed the day’s trade at a price of $0.320.

PYS International Expansion Delayed Due To Emerging Global Health Crisis

As a business offering software at work for people, PaySauce Limited (NZX:PYS) assists business in New Zealand in managing various aspects of their human resource ranging from contracts to digital timesheets, payroll, banking and filing. The Company, founded in 2014, has firmly established as a leader in the farming space.

As a result of the emerging global health crisis due to the Covid-19 pandemic, PYS has anticipated a delay in its international expansion with an expected delay its plans to enter the Irish market. However, the remaining strategy of the business has continued to be upheld and is on track.

The PYS stock surged 8.11% intraday on 02 April 2020 and closed at a price of $0.400.

NZO Takes Steps to Mitigate COVID-19 Impact

With deepwater exploration acreage and onshore exploration operations, New Zealand Oil & Gas Limited (NZX:NZO) operates with a low-cost structure, cash for acquisitions, and subsurface expertise. The Company, which operates in New Zealand, Australia and Indonesia, has deepwater exploration acreage in Canterbury and Great South Basins and onshore exploration in the producing Taranaki basin of New Zealand.

Amidst the Covid-19 pandemic, the Company has implemented best-practice approach from a health and safety and business continuity perspective. Its key revenue stream is the Kupe gas field and NZO has been making smooth progress across its exciting Ironbark gas prospect in Western Australia. Operators at these two projects have well-developed plans to address the challenges arising from the pandemic.

The NZO stock went up by 4.44% intraday on 02 April 2020 and settled at a price of $0.470.

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