Veterinary medicine isn’t necessarily a red-hot sector among market traders in general. However, Zomedica (NYSEAMERICAN:ZOM) has earned a place in the conversation as ZOM stock has been making some serious moves lately.
Zomedica seeks to improve veterinary care by helping to provide diagnostic tools and better support services to veterinarians. And indeed, it’s commendable that the company wants to address unmet veterinary needs.
But let’s be honest. For risk-tolerant market traders, ZOM stock isn’t about saving dogs and cats. It’s about making fast money. To that end, recently some long-side ZOM traders made out like bandits.
So, now it’s a question of whether the stock can hold a key price level. Just as importantly, investors will also want to know whether the upward trajectory can continue for this fascinating, low-priced stock.
A Closer Look at ZOM Stock
On the afternoon of Feb. 1, 2021, ZOM stock was sitting at about $1. That might not sound like a huge number, but it’s a substantial improvement over where the stock used to trade.
As recently as Nov. 3, Zomedica traded between six and seven cents per share. That was the 52-week low for the stock and it was surely a gut-wrenching experience for the shareholders.
My feeling is that the ZOM stockholders were getting tired of waiting for Zomedica’s primary product to be released for sale. However, the folks who held onto their ZOM shares were rewarded handsomely in the coming weeks.
The stock blasted up to the $1 level and even higher in January. That’s extremely bullish price action. But, before you jump into the trade, we’ll need to talk about whether Zomedica is really a company worth investing in.
What Zomedica Has to Offer
Zomedica isn’t so much a pet-med company as it is a pet-tech developer. The company’s flagship product is known as Truforma. It’s a biosensor platform that assists veterinarians and other practitioners in diagnosing complex conditions.
To be more specific, Truforma helps to diagnose endocrine and metabolic disorders, “deliver[ing] accurate, reliable data when testing for thyroid and adrenal disease.” The technology has a number of claimed advantages:
- Small and lightweight
- Easy to learn how to use
- Highly sensitive and accurate
- Allows for faster clinical decisions
- Offers “complete control over the testing process from start to finish”
The company claims that Trufroma offers “Gold standard results available at the point of care.” And that’s actually an excellent selling point — not just a catchy line. Naturally, pet owners don’t want to have to wait for test results to come back from an external laboratory if it’s not necessary.
Okay — so this might not sound newsworthy so far. But there are even more developments that are lending investors in ZOM stock a major confidence boost.
Getting Ready for the Rollout
So, what’s the big deal about Zomedica lately? Much to the delight of shareholders, the vet-tech company announced a new distribution agreement with Miller Veterinary Supply.
With this deal in place — and assuming that all goes as planned — Truforma will finally go on sale on Mar. 30 of this year. It’s potentially a watershed moment for the company since, after all, it’s ZOM’s first product to hit the market.
What’s more, Miller Veterinary Supply certainly seems to be an ideal partner in this endeavor as it’s the oldest wholesale veterinary distributor in the United States. Zomedica CEO Robert Cohen also appears to believe that the two companies are a good fit. Cohen noted, “We believe that the principals of Miller share the same commitment to quality, customer service, and value that we hope to be hallmarks of the TRUFORMA™ line of products.”
So, will this new rollout lead to significantly higher prices in ZOM stock? InvestorPlace contributor Mark R. Hake calculates that the stock “could be worth $2 or more if it can garner 10% of the pet diagnostic lab market share.”
As for me, I’d be happy if the shareholders took profits at $1.50. Always remember, there are bulls and there are bears, but its the pigs that get slaughtered.
The Bottom Line
So, Zomedica’s latest deal is built on a solid product and should offer both hope and confidence to ZOM shareholders.
Maybe the share price will reach $2. Maybe it won’t. Either way, though, it looks like ZOM stock is at least on the right path.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.