Earlier on this year, Zomedica Corp (NYSEAMERICAN:ZOM) had emerged as a viable option for many investors and the stock had also made considerable gains. However, the situation has changed quite dramatically in recent weeks and retail investors have increasingly headed for the exits.
Earlier on in the year the stock had hit its 52 week high of as much as $2.91 a share but on Thursday it closed at only 46 cents a share. In this situation, it is necessary for investors to figure out their strategy with regards to Zomedica. At the end of the day, it remains one of the many meme stocks in the market and even minor news can often move the stock price.
In such a situation, those who have the requisite risk appetite can perhaps still afford to invest in Zomedica. However, for a meme stock rally to materialise, there needs to be a reasonable degree of short interest in the stock so that a short squeeze can actually take place. That does not seem to be a possibility considering the fact that the Zomedica stock currently has a short interest of only 10%. In this situation, investors could do well to sit on the sidelines at this point.
