The only thing I knew about Zomedica (ZOM.V) prior to their launch on the TSX Venture Exchange Tuesday was 1) former Stockhouse eastern sales goddess Stephanie Mann is now working for them, which is a big plus, and 2) their story needs better telling.
Today I know a third thing – they’re live, and their stock ran from an initial $0.30 nibble to $0.92 in a day. Not bad for the early adopters.
So what is Zomedica? Well, there’s not all that much information about that end.
No, scratch that – there’s a lot of information but it doesn’t actually tell the story.
If you go by the recent Q&A, linked above, they’re really intent on listening to vets about what can be done to make companion animal treatments better, cheaper, and easier to use. That’s good. And the website says, “A healthy vet is joyful, profitable, effective and courageous. Everything we do is centered on helping you achieve and sustain a healthy vet lifestyle.”
Okay.
But that’s repeated a LOT. I get it, you guys, you see an opportunity in being the vet’s friend. You have vets on the board. There’s vet posters on the walls and vets on your social media profiles and when you dream, you chase sparkly unicorn vets across a moonlit sky.
But let’s talk company now. What’s the for realsies opportunity?
Going back to brass tacks, the company recently backed into what was Wise Oakwood Ventures Inc., which was as much an important entity in the world of finance as I am Charlize Theron’s boyfriend. With the shell properly utilized by Zomedica, the founders tooled up with lots of shares and options, ranging in price from $0.05 to $0.25, which makes today’s launch an absolute beauty for those whose stake isn’t escrowed for ages.
Fortunately for investors, a lot of it is. Which means you’ve got a company filled with guys who are really keen to set this thing up for the long term, so they can get paid all those tens of thousands of dollars they just made on paper.
How quickly can Zomedica develop actual FDA approved products for their pipeline? Will their long roster of guys with letters in front of and behind their names make that approval pipeline quicker than the norm? And do they really know what makes a healthy vet? Or pet? I forget.
I guess what I’m saying here is I don’t understand yet. I see the words and I hear the slogans but I need details. I need a deep dive on this thing. So I’m going in personally.
Zomedica, I’m calling you out. Let’s talk soon, I’ll record it, and we’ll put it out as an Equity.Guru podcast, so that investors everywhere can get past the promise and into the actual plan.
There’s most assuredly money to be made in this space, and the people who have been at the pointy end of a throw-uppy cat are better suited to figure out where that money can come from than some bespoke-suited Howe Street rounder, but I want to get into the weeds on this thing.
Let’s do this, ZOM!
–Chris Parry
http://www.twitter.com/chrisparry
FULL DISCLOSURE: Not a client. Not a stock I own. Just really interested in a good story, and this market open has been a good one.
Hello Chris Parry ;)……now, you must admit, with 1.8 million shares out, a rise of that “magnitude” is more then conceivable, it’s stupidly obvious.
Hi Mr. Parry,
I discovered your site while searching for information on Zomedica. I enjoyed your article and confirmed what I was thinking, that Zomedica is big on intentions but small on details. With under 3 million in cash, no real clinical program in place from what I can see and a market cap exceeding 80 million CAD, this at first glance looks like a house of cards.
Contrast this with a company like Kane Biotech (KNE on TSXV, also operating in companion animal health) which already owns 67 patents, has a commercialized product with sales ramping nicely, insiders with tons of skin in the game at prices slightly higher than where it trades, approximately 3 million in cash and additional products to be released in the short term. The market cap on KNE is below 6 million CAD.
I am very interested in KNE as an investment and was wondering if you could perhaps look at the two companies in closer detail and maybe write an article contrasting their relative values.