Shares of Zomedica Pharmaceuticals (NYSEMKT:ZOM) continued their recent rapid ascent on Tuesday. As of 11:33 a.m. EST, the veterinary health company's stock price is up more than 40%.
Excitement may be building for the upcoming launch of Zomedica's point-of-care diagnostic platform for pets on March 30. The company says its patented system can help detect thyroid and adrenal disease in cats and dogs.
"We set out to develop a product that could provide the accuracy of the reference lab and the convenience of point-of-care for the veterinary community," Zomedica chief medical officer Stephanie Morley said in a November press release announcing the launch. "As a vet myself, I know the value of such a product to a veterinary practice."
However, it appears that stock promotion schemes may also be contributing to Zomedica's recent price gains. Carole Baskin, star of the popular Netflix show Tiger King, recently appeared in a video on social media speaking favorably about Zomedica. She may have been paid $299 to do so, according to Benzinga.
Up until today, Zomedica's stock had been trading for less than $1 per share. Small-cap stocks with low share prices, often referred to as penny stocks, can be highly volatile. Stock promoters can quickly drive up their share prices, but shareholders often suffer brutal losses once promoters move on to other stocks. Thus, investors may want to consider taking profits in Zomedica if they own shares.