What’s Happening to the SeaLink Share Price?
Shares in SeaLink Travel Group [ASX:SLK] have risen 19% since it closed at $1.95 on the 15 of January. The company’s operations included the Kangaroo Island ferries in South Australia, and Captain Cook Cruises.
The stock is also moving up alongside the bullish trend of the general market at the moment.
Why Did This Happen to SeaLink Shares?
The stock market is pricing in strong earnings for the company. On 6 February, the company gave its half year report for the period ending in December 2014. Net profit was up 37% for the first half of the financial year on the previous corresponding period.
What Now for SeaLink Travel Group?
The company had $6.2 million in cash on hand at the end of December. It also has a low level of debt. A lower Australian dollar and a low oil price are a positive for the company. If Australian tourism can keep improving, things look reasonably bright for SeaLink.
If you want to know why you should expect a strong Australian economy for the foreseeable future, click here.
Editor, Markets and Money