Ignore Zomedica’s Recent Struggles. The Road Ahead Remains Bright.
Ann Arbor, Michigan-based veterinary health company Zomedica (NYSEAMERICAN:ZOM) could be seen as a company in transition. Changes are afoot, and ZOM stock traders should be aware of the latest developments.
From a technical perspective, the share price has declined from its peak. That’s not a bad thing, assuming you didn’t over-leverage yourself when the price was high (a strategy which typically isn’t recommended).
Regarding the company itself, Zomedica’s recent corporate update provided a clear road map for growth and progress.
Plus, there’s a major change that’s set to take place at the highest level of the company. All in all, it’s an exciting time to be invested in Zomedica and the biggest gains may be yet to come.
ZOM Stock at a Glance
Amazingly, ZOM stock could be purchased for less than a dime in November 2020. The stock can’t be bought at that price anymore, but it’s still quite affordable.
Surely, you can recall the meme-stock mania that took place earlier this year. Although this would be difficult to prove, it’s possible that Zomedica got caught up in that tidal wave.
The buyers managed to lift the ZOM stock price up to $1.30 in January 2021, and then to a 52-week high of $2.91 on Feb. 8. But then, unfortunately, a multi-month slide commenced.
Perhaps this can provide a lesson against buying stocks during the hype phase. When the price goes vertical, it’s oftentimes a good idea to take profits and/or use other cautionary measures.
In the case of ZOM stock, it fell back below the $1 level in May. And as of July 13, the share price was down to around 68 cents.
If you’ve been sitting on your hands and waiting for a buying opportunity — or if you’re just learning about the stock today — then you may have a chance to take a position at a favorable price point.
Big Changes Under Way
The best way to describe Zomedica is as a company that creates products for companion animals of the canine, feline and equine varieties.
The primary target consumer demographic is veterinarians and their clinics.
Zomedica’s flagship product is called Truforma, and it’s a pet diagnostics platform.
In April, the company announced its decision to expand its direct sales organization, while at the same time phasing out its distributor-based sales efforts for Truforma. “A direct sales force will significantly improve our ability to serve our customers and to sell our products in the veterinary market in the longer term,” explained Zomedica Chief Commercial Officer Brük Herbst.
That’s a major change for the company. And as we’ll see, there were also personnel-related changes in the works.
In particular, to lead Zomedica’s acquisition and licensing efforts, the company hired Greg Blair as its new vice president, Business Development.
Yet, Blair’s on-boarding hasn’t been Zomedica’s only C-suite-level change.
A very recent corporate update revealed that Zomedica CEO Robert Cohen intends to retire as CEO at the end of this calendar year. “An extensive search has been initiated to find a highly qualified successor, at which time I will retire from the CEO position while retaining my seat on the Board of Directors,” Cohen clarified.
Thus, we’re truly witnessing a company in transition here. That should be fine, though, as Zomedica appears to be moving forward quickly with the advancement of Truforma.
Reportedly, five initial assays to test for adrenal and thyroid disorders are planned for Truforma. Moreover, those will be followed by “many more assays” to address other disease states.
Plus, three of the initial assays — for TSH, tT4 and Cortisol — are already currently available. The fT4 assay is expected to be available for commercial sale in the late September or early October.
Meanwhile, development work continues on three assays to diagnose gastrointestinal conditions.
The Bottom Line on ZOM Stock
Clearly, there’s a lot going on at Zomedica today. The situation looks bullish, even if the share price doesn’t reflect this.
With all of this in mind, there’s no need to sit around and hope that ZOM stock goes down further.
The share price is already cheap, and transformative changes at Zomedica could propel the stock higher in the long term.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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