Tech stocks continue to impress on the ASX. With the latest breakout coming from Vection Technologies Ltd [ASX:VR1].
The small software company, VR1’s share price is trading 33.33% higher as of time of writing. Climbing on the back of a newly announced deal with US computing giant DELL.
It just might be the partnership that kickstarts Vection’s much-needed comeback…
A new dimensional direction
The terms of the agreement will see Vection become the newest member of DELL’s Software and Peripherals global sales program.
However, Vection’s key partner in the deal will be JMC Group. An existing DELL Platinum and OEM Partner that will help integrate Vection’s software into the broader DELL ecosystem.
Together, the two will work on ‘end-to-end’ virtual reality technologies. Utilising JMC’s hardware expertise and Vection’s diverse software to create a holistic offering. As they note:
‘The integration between hardware and software for virtual reality and extended reality technologies represents a key focus area of enterprises today in their digitalisation journey towards Industry 4.0.
‘Through this partnership, Vection and JMC will deliver unique enterprise end-to-end solutions for transversal industry application supported by DELL’s global sales footprint.’
It all sounds very impressive. But, with no actual money involved, it is hard to evaluate the impact it will have on Vection’s bottom line.
However, if all goes to plan, Vection will be the beneficiary of DELL’s sales pipeline. Garnering revenue from customers that otherwise may not have been aware of or have a need for their software.
Time will tell just how lucrative this partnership will be.
But for now, it is certainly something shareholders can afford to get excited about.
Tech boom to continue?
More broadly speaking, today’s result for Vection seems like just another win for tech stocks. A sector that has been booming both locally and overseas of late.
Ever since COVID-19, tech has been the sector to beat.
Whether or not this is sustainable though, is a question that remains. It wouldn’t surprise us to see some companies pullback in the coming weeks or even months. As expectations become grounded once more.
However, that doesn’t mean investors should avoid the market altogether. Even if tech is looking like it’s in bubble territory, there are still plenty of great stocks out there right now. Even at the lower end of the market.
Our report on ‘high-value small-caps’ for instance can give you some prime examples. Including four stock recommendations that look primed to explode in the post-covid market.
Because wherever the market may be headed, opportunity always awaits.
For Money Morning