The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have bounced back strongly today with a 0.5% gain in morning trade, but this is nothing in comparison to some of the gains being made at the small end of the market.
Three small cap shares that caught my eye with big moves today are listed below. Here's why they are on the rise:
The Compumedics Limited (ASX: CMP) share price has returned to trade and rocketed a massive 67% to 68.5 cents. This morning the medical device company announced that it is looking to form a joint venture with leading China-based premium health-check company, Health 100. The two companies aim to form a joint venture that will commercialise Compumedics' Somfit product and technology platform in the China market. If successful and the China Food and Drug Administration gives its approval to the device, Health 100 will purchase 1 million Somfit devices from the joint venture over a two-year period. This is expected to generate revenue of at least A$133 million (US$100m) over the period. Compumedics will own approximately 49% of the joint venture.
The Resapp Health Ltd (ASX: RAP) share price has pushed 5% higher to 14.2 cents. This morning the medical technology company advised that recruitment for its SMARTCOUGH-C-2 study is progressing well and is expected to complete by the middle of the year. The study is evaluating the efficacy of the ResAppDx smartphone application for the diagnosis of childhood acute respiratory disease using cough sounds and will enrol up to 1,667 patients at the three participating hospital sites in the United States. While the technology looks very promising, the last study was a disaster for the company. If this one isn't a success then I think it will be hard for the company to move forward from here.
The Zip Co Ltd (ASX: Z1P) share price is up over 4% to 86 cents after the fintech company announced that Super Retail Group Ltd (ASX: SUL) has joined its interest free payments platform. This is the largest retail group to have joined Zip's platform. The rollout is expected to commence from July onwards and means both the Zip and Afterpay Touch Group Ltd (ASX: APT) platforms will be available to Super Retail's customers now.
