Wearable technology can often feel like a fad.
A market that is perhaps exemplified by the incredible rise and fall of Fitbit.
But, despite the shortcomings, wearable tech is still around. In fact, one could argue that it’s even making a comeback…
dorsaVi Ltd [ASX:DVL] has certainly lent credence to this line of thinking today. The share price in this tech small-cap are trading 515% higher at time of writing.
That in itself is a remarkable gain — but a far cry from the 1,592% peak recorded in earlier trading.
Suffice to say, day traders have had a field day with this stock.
Big deal with a big partner
The cause of this overnight success was a newly announced deal. One that will see dorsaVi partner up with insurance giant QBE.
With an initial $250,000 budget, QBE will offer their customers access to dorsaVi’s products. Devices that measure, track, and provide data on a company’s workforce.
With this information, companies can then see what exactly is going on. Paving the way for better practices to improve both safety and efficiency.
Though it is the former which QBE has far more interest in. No doubt looking to reduce the number of workplace incidents and subsequent claims. As their General Manager of People Risk notes:
‘Over the past two years we’ve been increasingly looking at ways we can reduce the risk of injury for workers. New technologies offer great promise for taking a proactive role in making workplaces safer and we’re excited to be working with dorsaVi’s technology to achieve this.’
For dorsaVi it also gives them a chance to show off their wares. Because if this initial 12-month deal is a success, more offers are bound to come knocking. Be it from QBE or elsewhere.
Converting on momentum
The challenge for dorsaVi now is to keep the ball rolling.
Landing this deal is huge, but they must build upon it. Finding further ways to convert this newfound limelight into a bottom-line win.
It’s a position that few small-caps ever reach, let alone capitalise upon. And for that reason, dorsaVi can’t afford to squander this chance.
This could be the start of something much bigger. And clearly shareholders are aware of that judging from the ravenous trading today.
If you missed the boat though, well, don’t feel too bad. There are still plenty of other promising small-caps to choose from right now.
In fact, we’ve got four that believe could be major, future winners. Check them out in our latest report, right here.
For Money Morning