Fitbug soars again as it announces new distribution and marketing

Shares of wearable fitness specialist Fitbug (FITB) has been a little subdued of late after an amazing run that pushed them from 0.4p to 26p in little more than weeks after deals with Samsung, Target and Sainsbury. A £3.5 million placing earlier this month at 9p and profit taking took the price right back to 7.5p. Today the shares have zoomed up again 45% to 10.25p after further news on distribution contracts and marketing activity. Fitbug is proving a traders dream!

Bestbuy.com, the leading American online consumer electronics retailer, has agreed to sell Fitbug Orb and Kiqplan as part of its wearable range from January 2015. Amazon.co.uk has agreed to expand its range of Fitbug products to include Kiqplan and has agreed a marketing programme for the New Year and US retailer, Target, has agreed a January 2015 marketing plan to promote both Orb and Kiqplan propositions. The plan will feature both digital marketing on Target.com and the Target Cartwheel app, in addition to in-store support. A wider US and UK PR and marketing programme has been finalised for both the Fitbug Orb and Kiqplan, commencing January 2015.  This campaign will feature digital media in the US and digital and print media in the UK.

There certainly seems to be momentum behind these shares right now and any good news on the sales front in the New Year may see further gains, especially after the strong sell off in recent weeks. After the marketing investment and new distribution points for Fitbug Orb can management deliver on high expectations?

Contrarian Investor UK

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