CV Check (ASX:CV1) share price storms 7% higher. Here’s why

The CV Check Ltd (ASX: CV1) share price has stormed higher today following a positive announcement before market open.

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The CV Check Ltd (ASX: CV1) share price has stormed higher today following a positive announcement before market open. At one point, the online technology company’s shares reached a high of 17 cents in early morning trade. The CV Check share price has since retreated to 15 cents, at the time of writing, up 7.14%.

This compares to the All Ordinaries Index (ASX: XAO) which is up 0.41% to 6,421 points.

What’s moving the CV Check share price?

The CV Check share price is on the rise after the company advised that its best-of-breed screening and verification solution is now available to the market. The new product is aimed at providing wholesale services to other large international screening and verification players.

The white label rollout will tick off the company’s strategic objective as previously announced.

Further to the update, CV Check signed United States employment screening specialist, NetForce Global LLC. The agreement will see NetForce become CV Check’s first international wholesale customer.

What did management say?

CV Check CEO, Mr Rod Sherwood, commented on the deal. He said:

In its FY2020 Annual Report, CV1 advised pre-commercialisation had commenced on the strategic project to take its white label technology beyond our current Australia and New Zealand base.

We are pleased to advise that our first major contract under this initiative has now been executed and we welcome NetForce Global as our first inbound international wholesale customer.

White label addressable market

The full-service screening and verification market comprises several thousand firms on a global scale. While most background checks occur within domestic markets, CV Check said that the international mobile workforce is increasing. Thus, companies like NetForce are able to rely on a trusted partner to screen any persons who are seeking employment.

In addition, both CV Check and NetForce are active members of the Professional Background Screening Association (PBSA). The international organisation represents the interests of companies offering background screening services and promotes a high level of ethics and performance standards.

Should you invest?

Over the course of the last six months, the CV Check share price has performed strongly. The company’s shares have risen over 114%, trading just below their 52-week high of 18 cents. As more companies continue to return to normal trading following the fallout of COVID-19, employment checks could be expected to surge. 

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. 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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