ZOM trade ideas
Time for a reversal?As we have seen in the last couple of months, when a divergence signal (green #1 on chart), a Tom Demark Seq signal (red #8 on chart), Stoch RSI below 20 and VIX FIX bottom indicator(green bars below the chart)
appears together, there is a reversal.
The price could not break 0.10 downwards and it showed high buy volumes during the first week of september.
Investors are waiting for the decision for a potential Reverse Split after the proxy voting results at the Annual Shareholders meeting on September 25th.
But I think a reversal will take place until the meeting to carry the share price around $0.20 before landing back at the 0.13-0.16 range.
High chance of reverse split .To early to tell, but I think there is a good chance that ZOM shifted from distribution phase in to accumulation phase .$0.12 price level is showing strong support and it is also (in my opinion ) psychological point -moving past that level can potentially trigger an avalanche .At this moment we can expect price to move sometime in $0.12-$.13 channel .
Reverse split might have a positive impact on the price of ZOM ,penny stocks have a bad reputation, and that's not what most legitimate companies want to have. So a reverse split can boost the stock to a “respectable” price. This may lead to increased attention from analysts and investors, who may see the company as more legitimate at the higher price, many institutional investors and mutual funds have policies against taking positions in a stock whose price is below a minimum value.
August 27, 2020
Dear Zomedica Shareholders:
As I pass my second month anniversary at Zomedica, I have been looking forward to communicating with
you directly and to offering both my impressions of the Company and an update on our progress. I am
pleased to report that I have been impressed by what I have seen since assuming the CEO role. I believe
that the core technology, planned products, and employee base of Zomedica are strong, and that our
future is bright. Recognizing that the Company has been through some challenging times in the recent
past, we now all are united in the singular goal of advancing our lead product platform -- TRUFORMA™
-- to market as expeditiously as possible without sacrificing the quality of the product, which is critically
important to Zomedica.
Our intent is to launch TRUFORMA with five assays, which I believe immediately will make it a
valuable contributor to the veterinarian's practice, both clinically and economically. This means that we
are, in effect, developing five products simultaneously, which is a substantial undertaking. As reported in
past news releases, in partnership with a subsidiary of Qorvo, Inc., which had revenues last year of over
US $3.0 billion, we already successfully have verified three of the assays, and work is progressing on the
remaining two. Proper testing is an important part of any product development effort, but more so when
your product will be used to diagnose a living animal. We never forget this responsibility and we do not
compromise in this area. That is why product development takes longer than some people would like.
Validation must follow verification, and then market testing occurs prior to commercial release. While
we have worked to streamline this process, it still takes time. We certainly appreciate, and hope to reward,
your patience in the not-too-distant future.
As I write this letter, we have more than US $50 million in cash and cash equivalents as a result of our
capital raising activities in 2020. By taking advantage of favorable market conditions, we believe that we
now have sufficient cash to take us well beyond TRUFORMA commercialization and have reduced
dramatically the financing risk that previously has been an issue for our company. This additional capital
also puts Zomedica in a better position to weather any new adverse consequences of the pandemic. We
intend to be good stewards of our capital and will continue to embrace a "lean and mean" operating
philosophy.
Our commercial team has been working hard to prepare for the upcoming market release of
TRUFORMA. We intend to pursue a hybrid sales model for the United States utilizing a small number of
high-quality regional distributors who will be supported in the field by our own Zomedica direct sales
employees, some of whom will service key geographies independently of our distributors. We also plan to
have several veterinary clinical direct employees who, when needed, can provide deep clinical expertise
on our products and their applications. Our goal is to assemble a selling organization that is appropriate
for a variety of circumstances and to be ready to hit the ground running with a sizeable effort and preexisting customer relationships from day one. The behind-the-scenes effort employed to develop
marketing and educational materials also is in full swing. The sales organization that we are building is
intended not only to support TRUFORMA, our customers and their patients, but also to be suitable for
future Zomedica products. I am looking forward to our Annual Meeting of Shareholders. Normally, I look forward to meeting as
many shareholders as I can in person, but these are unusual times. I hope to address most, if not all, of
your questions at the virtual meeting. While I realize that we have a "crowded" proxy statement, one
agenda item for the meeting that I know is the subject of discussion among shareholders is the proposed
reverse split, or consolidation, of our outstanding common shares. We are seeking your approval for the
reverse split in order to comply with a specific requirement of the NYSE American exchange that we
increase the trading price of our common shares. If we do not receive shareholder approval for the reverse
split at the Annual Meeting, our common shares will be delisted from the NYSE American. It is important
for us to maintain our listing to assure that there is a liquid market for our common shares. The reverse
split is intended only to increase our stock price by reducing the number of shares outstanding, which is a
purely mathematical exercise that does not affect your ownership interest in the Company . Accordingly,
our Board of Directors has recommended that shareholders vote in favor of the reverse split.
Finally, I would like to wish you all well during this difficult time. We at Zomedica have adjusted to the
new COVID environment, with the majority of us working remotely. We proactively are addressing
COVID-related issues that could impact our commercial launch, including by the development and
implementation of remote installation capability for our TRUFORMA instrument.
In summary, I believe that we now are well capitalized and well equipped to face the challenges ahead of
us as we move toward commercialization. These are exciting times. Stay safe and healthy, and I look
forward to delivering additional updates as we make further progress with our key milestones.
Robert Cohen
Possible reversal at ~0.1250?ON the 30 min chart we can see head and shoulders pattern ,also look at the the volume under each peak .I think that ZOM can go as low as $0.1250 area before we can expect possibility of it to start moving higher .Lots of pressure for sure...same pressure as it was before when it bounced up from the same low levels ....There is an open gap between $0.19 and $0.22 , but who knows if it is going to be filled ,but all other gaps in the past got filled...Still holding.
Do Stock Price Gaps always get filled?Do Stock Price Gaps always get filled?
Conclusion: So what's that mean: when a stock price gap is observed, by a chance of 91.4% it will get filled in the future. In layman's word, 9 in 10 gaps get filled; not always, but pretty close.
So far all ZOM price gaps got filled ,is it going to be different this time? Thanks for your time.
It's the end of the world as we know it...All in the chart .Share your ideas .Thanks for your time .
Interesting pattern .Take a look at OBV pattern on a weekly chart , it moves in 4 relatively big waves -yellow mark is your 1, then next high is 2, then next low is 3 and next high is your 4, and then it goes back
to 1,2,3 and so on .... Are we at the end of wave 3 ? Also take a look at WMA/RSI ,zoom out to get a better picture .Thanks for your time .
Two days 'till earnings report .CHART-FROM THE TOP TO THE BOTTOM : ~$0.1460 support (green horizontal line) tested again and price started to move higher -positive ,MACD line (blue) moved above SIGNAL LINE (orange)-positive ,ROC above zero line-positive,RSI - 50% and moving north-east -positive, UO forming higher lows since July 31st on the price decline-positive ,CMF above zero line-positive .BB (not in the chart) on 4 hour chart is narrowing -there will be a move....Now the question is how high will it go? I do not know...If you want to play safe then set your target to ~$0.20-$0.21 this is new and possibly final lower high of the triangle(refer to my other chart "The cyclical nature of history" link is posted below ),from that point price can skyrocket towards $0.30 and above or move all way down to single digits...Pick your side. If you ask me I have not moved my target , it is set to $0.30, I can be wrong with my analysis or I can change my opinion based on the action ,so do not take it as financial advice . Thanks for your time .
Pennystock Wedgie. (ZOM)I will be trying to add 1% to this position around 13 cents p/share for a test on the recent bottom.
If breaks, will drop to the bottom of the wedge as we try to create the wave 5 of retracement.
Will look to add 0.5% if it does touch bottom of wedge.
This will be a longterm play with anticipation to breakout of the wedge for a impulse.
For all my cool cats and kittens....Hoping we can still see some accumulation to get us up around 0.25ish again in keeping with the current pattern.
Not advice. I'm a newb. Happy trading
Call it wishful thinking.I am holding relatively large bag and my vision can be distorted because of that fact .But here is my price prediction (target) for the next 10 days or so.I am not discounting possibility of ZOM moving down to $0.13 area right before it move up towards $0.27-$0.34 area ,possibly as high as $0.39. My original target was at $0.22 , but after doing some thinking and reading I have decided to move it higher (white horizontal line )If I am wrong then I will switch to plan B.Thanks for your time.
Zom: support flip resistanceclassic bearish. We could still be in the triangle tho if u draw the lines differently. you decide
So far so goodFrom the bottom to the top:
CMF: above zero
ROC: above zero
RSI :54%
MACD : above signal line
UO: keep forming higher lows even when the price was in decline for the past 2 weeks
MA50 price is touching it possibly will go above it
On the top of that :Good news about TRUFORMA, also earnings report is coming soon ,analysts are also positive(predicting price to reach $0.50...) Zacks report for ZOM is set for 2(BUY) and we are due to form another lower high in the symmetrical triangle trend which ZOM is moving for the past 4 month. So far so good .
ZOM: bull flag, breakout target 60 centhopefully zom going to 60 cent when truforma launch. That would be breakout target for the flag were in
