Today's major gainer is surely 9SP, a gain of 190% in a single day - largely due to an announcement of its products being admitted into Microsoft's One Commercial Partner programme and Microsoft's AppSource Marketplace.
Understandably such an announcement is greeted with excitement to know that a small company such as 9SP can possibly gain quicker market traction with inclusion into Microsoft's programme. And its a great reason for the market to recalibrate its market cap back to circa $17m from a woeful $6m.
However, market participants should not be overly carried away with this prospect - as inclusion into a major's channel programme does not guarantee success nor sales. We have seen this in a number of cases -- K2F's Infoscope included in SAP but no market traction thus far after more than half a year , IoT's drone included in Ingram Micro's distribution as is Buddy Platform (BUD's Buddy Ohm into Ingram Micro's distribution , the former a failure and the latter increasingly looking like one too. The reason comes down to how capable the product is able to capture the major's clients interest in its value proposition and commercial attractiveness- the majors are not going to spend a lot of their resources to push your company's products if they have intractable issues in the marketplace.
Not to take the shine off the great news for 9SP but the above is something that people should understand. It is too easy losing money in the hype of the day.
