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The Buddy share price is up 33% higher today. Here’s why

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Credit: Amodiovalerio Verde, Flickr.com

The Buddy Technologies Ltd (ASX: BUD) share price is flying more than 33% higher today. The bullish price action follows an announcement that the company released earlier.

What did Buddy announce?

Earlier today Buddy Technologies announced the launch of a new antibacterial light product. The company informed the market that its world-first smart light, LIFX Clean, has successfully passed efficacy and safety testing.

LIFX Clean is a fully functional white and colour lighting that uses germicidal antibacterial light to disinfect surfaces and surrounding air. The company noted that LIFX Clean is an extension of its multi-patented LIFX A19/A60 1200 lumen smart light platform. According to Buddy, this LIFX Clean is designed to emit visible light at a germicidal wavelength of 405 nano metres.

Buddy said the LIFX Clean product had passed efficacy testing conducted by the Department of Chemisty at Australia’s Swinburne University of Technology. In addition, the company noted that LIFX Clean was in the queue to be tested for efficacy against COVID-19.

Buddy’s management highlighted the innovative nature in developing LIFX Clean and said it expected the product to meet enormous demand. The company said LIFX Clean was developed and ready for market launch as an antibacterial product in Australia, New Zealand, Europe and the EU. However, the company noted that the US market was subject to different regulatory requirements.

What does Buddy Technologies do?

Buddy Technologies is an Australian-based company that operates in both commercial and consumer sectors. The company’s commercial business focuses on helping customers leverage digital technologies for energy monitoring and reporting.

Buddy’s consumer business trades under the LIFX brand and is a provider of smart lighting solutions. The company has a wide portfolio of Wi-Fi enabled lights that are used in nearly 1 million homes and sold in more than 100 countries.

Should you invest?

At the time of writing, the Buddy share price is trading more than 33% higher at 9.2 cents for the day. The company’s shares have been sold down slightly after hitting an intra-day high of 9.3 cents earlier. Overall, the Buddy share price has performed strongly for 2020 and is up more than 158% for the year.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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