Zomedica Corp (NYSEAMERICAN:ZOM) is an upcoming business in the early growth stages. Such kinds of businesses are riskier stocks to buy relative to established companies. Zomedica will take years before turning a profit, and investors are aware that they are taking a significant risk.
However, if the Truforma system, used for animal diagnostics by veterinarians, becomes a hit, early investors will earn massively. It is vital to note that growing businesses such as Zomedica can take time, and expenses management and losses minimization can be critical in keeping the stock from crashing.
The company’s aggressive sales approach is doing it a disservice as per the recent results. Zomedica has invested in its sales force, and in Q2 2021, the company’s selling, general, and administrative expenses were $5.04 million rising from $3.47 million in the previous quarter. In addition, the company sold its first Truforma system in March, and sales in Q1 were $14,000, and in Q2, they were 16,000. Therefore, ZOM is a stock investor should keenly watch.
Market Reaction:
On Friday, ZOM stock gained 2.74% at $0.5957 with more than 46.01 million shares, compared to its average volume of 28.54 million shares. The stock has moved within a range of $0.5602 – 0.6240 after opening the trade at $0.5721.
