At time of writing, shares of Tyro Payments Ltd [ASX:TYR] are in a trading pause, having last traded down nearly 12%, or $2.32.
Having shown some promising signs since March on a relatively strong Australian economy, the TYR share price went into free fall today as you can see below:
Source: Tradingview.com
We look at the recent events surrounding the company, after previously covering the outage.
Tyro moves to halt trading on activist report
The Australian Financial Review gives a good account of what happened:
‘The problems at ASX-listed Tyro have compounded after activist short-sellers Viceroy lobbed a report that alleged the payments company’s terminal outages are far more widespread than it is willing to admit.
‘The 14-page report, which landed an hour into Friday’s trading session, alleged that about 50 per cent of Tyro’s payments terminals used by small businesses had been “bricked” and that the hit to Tyro’s business was impossible to quantify.’
At issue was Tyro’s recent update which claimed that 70% of customers were unaffected.
After a sharp sell-off, a trading pause was put in place just before noon to give TYR time to make an announcement.
Now who is right or wrong here, is not something that is possible to say at this stage.
But it will mean that, regardless of what happens over the next few days and weeks, there may be some latent reputational damage, according to one fund manager quoted in the Australian Financial Review.
Outlook for TYR share price
Now given the chaotic day for TYR, it may take some time for the company to get things back to normal.
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Regards,
Lachlann Tierney,
For Money Morning
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