After struggling since early March, shares of Zomedica Corp (NYSEAMERICAN:ZOM) are witnessing heavy buying interest in the morning session on Thursday.
After opening flat, ZOM stock started to pick up solid buying interest in the past few minutes and pushing the stock higher by 27% to trade at the highest point of the session at $0.65. So what’s driving the sudden pop-up?
Well, there is no news but one should not forget that the stock has corrected almost 80% from its peak price of $2.91 in March. However, today’s big jump has pushed up the stock to a new one-month high. Volume is heavy with more than 73 million shares traded hands as of 12.22 ET, well above its average volume of 26.93 million shares.
The company announced back in April that Zomedica Pharmaceuticals intends to expand its direct sales organization while phasing out its distributor-based sales efforts.
“As TRUFORMA’s market presence grew, we intended to transition from a distributor-based sales model to a direct sales organization. However, due to anticipated changes at our current distributor that we believe have impacted its ability to market our products effectively, we will be accelerating that transition and the building of a direct sales organization. While this effort may slow initial sales of TRUFORMA®, we have taken this action now to avoid any disruption to our customers and to provide a stronger foundation on which to build the marketing and sales of both TRUFORMA and any future products developed or acquired by Zomedica.”
Will the stock continue to move higher after today’s short squeeze?