Zomedica Corp (NYSE: ZOM) stock is coming back a bit this morning after a recent slump. In the first few minutes of trading, ZOM stock zoomed almost 14% and trading just below $1. However, today’s rally should not excite investors much as this could just be a dead cat bounce.
Although ZOM stock is up over 500% over the past year. one should note that the stock has lost almost 70% from its 52-week peak price of $2.91 in mid-February. Last year’s big rally in the stock was mainly driven by a lot of buzz about the company’s pet diagnostic product, Truforma. Although the company had released the product before schedule, investors preferred to sell the stock after the news.
There is no doubt that investors are confused after the company’s recent stock performance as the stock has lost most of its momentum rally despite the good news. ZOM stock is trading well below its 50-Day moving average of $1.85, but still trading above its 200-Day moving average. Now it would be interesting to see if we can see a quick bounce towards the 50-day MA.