Fitbug in bed with Amazon and Bestbuy

Wearable fitness devices firm Fitbug has been running around doing more deals, increasing the opportunity to ramp up sales and justify the runaway share price. Fitbug shares rocketed by almost two-thirds to 11.5p at one stage Friday after Amazon.co.uk, Bestbuy.com and Target signed on the dotted line.

Amazon.co.uk has agreed to expand its range of Fitbug products to include Kiqplan. It has also agreed a marketing programme for the New Year. Online consumer electronics retailer Bestbuy.com will now sell Fitbug's Orb fitness tracker and Kiqplan digital training app from January. Meanwhile, Target, the huge chain which has already begun stocking the company's wearables ranges, will promote both Orb and Kiqplan next month.

Clearly, this type of agreement is crucial to Fitbug. The so-called New Year's resolution season should be a goldmine for this kind of product, as Christmas revellers gorged on Turkey, chocolates and booze, race to shed the pounds.

Earlier this month, Fitbug raised £3.5 million before costs at a placing price of 9p. It will use the money will bankroll a big sales and marketing push both for digital coaching product Kiqplan, which will launch two new plans each month, and the company's wearable device Orb.

And now, Fitbug has confirmed it will kick off a wider US and UK PR and marketing programme in January.

As we've said before, it's difficult putting a price on Fitbug, at least with any great accuracy. The shares grabbed attention recently with an incredible 7000% surge in just one month, and have now become a favourite of small investors, so remain volatile.

Derren Nathan, an analyst at Hybridan, estimates that if Target alone grosses $100 per store per week in sales of Fitbug products, it should add about £3 million in annual revenue. But it’s still unclear when, or if Fitbug will issue Christmas and New Year sales data. It's also worth remembering that the litigation against the market leader in basic bands, Fitbit, for trademark infringement is due to reach the courts in February 2015, says Nathan.

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