Earlier this year, Zomedica Corp (NYSEAMERICAN: ZOM) had turned out to be a viable option for many investors, and the stock had made significant gains as well. However, the situation has changed quite dramatically in the last few weeks and private investors are increasingly aiming for exits.
At the beginning of the year, the stock had hit its 52-week high of up to $ 2.91 per share, but on Thursday it closed at just 46 cents per share. In this situation, it is necessary for investors to rethink their strategy in relation to Zomedica. At the end of the day, it remains one of the many meme stocks out there, and even small messages can often move the stock price.
If you have the necessary willingness to take risks, you may still be able to afford to invest in Zomedica in such a situation. However, for a meme stock rally to happen, there must be reasonable short interest in the stock for a short squeeze to actually take place. Given that Zomedica stock is currently only a short stake of only 10%, this doesn’t seem like a possibility. In this situation, investors could do well to sit on the sidelines at this point.