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Zomedica (ZOM) stock was up by 13% at close on Wednesday. Technically, the stock is coming to the key support position, so, should you make a bet on it right now?
Some investors who own the stock believed that the company can achieve huge profits through TRUFORMA platform, a veterinary diagnostics testing device. However, we have not heard any news about the sales of this device since the company announced its first commercial sale of Truforma platform. In fact, it is important for its investors. Truforma's sales will determine whether the company can reach profitability and it will also prove how big demand for Truforma which the market needs.
The company released its year-end financial results for 2020 on Feb and said that it is in the development stage and it recorded no revenue for the year, its net loss was about $16.9 million in 2020, but it was less than the previous year, the company also said it had cash and cash equivalents of about $62.0 million, so the company should have enough time and capital to build sales team for Truforma and to launch sales.
If Truforma is a success, there is no problem for its market value of $1 billion, and its stock will back to $2 above again. But all things seem to be in the next earnings report of the company, it is not a good time to invest in the stock right now.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.