Netflix “Tiger King” star Carole Baskin appears to be the more influential – not even when it comes to penny stocks.
The little-known animal health and veterinary stock Zomedica, based in Michigan, has risen nearly 250% since she received a mention from Netflix’s Tiger King “star Carole Baskin last week. In a video that has been re-posted on YouTube, Baskin delivers a glowing review for the company, saying, “I do not know if you have heard of Zomedica, but they do help our vets and our furry friends” and that she “definitely invested is “to find out more” about the company.
But Yahoo Finance has confirmed that Baskin’s approval was the result of a request from someone on Cameo, a platform where users can pay for video messaging.
“It was a cameo they paid for,” Baskin told Yahoo Finance. “I have no shares in the company and make no stock recommendations.”
CONFIRMED: Carole Baskin tells me that her Zomedica listing, which may have caused a 230% increase in the penny stock, came from a $ 299 Cameo request
‘It was a cameo they paid for. I have no shares in the company and do not make any stock recommendations. ‘ https://t.co/6t4vRujGBl
– Zack Guzman (@zGuz) 12 January 2021
Zomedica (ZOM) did not immediately respond to Yahoo Finance’s request for comment to determine whether the Cameo request came from the company or anyone from the company. It is also possible that the request from an outside investor would have led to an increase in the share price, which last week was only $ 0.40. The company in Ann Arbor, which was incorporated in Michigan in 2016, has not yet generated any revenue, according to the financial statements highlighted by Myles Udland of Yahoo Finance.
According to research firm Breakout Point, the penny stock was also one of the most actively traded on volume on the popular small investment platform Robinhood. It’s not uncommon to see penny stocks like Zomedica on a list of the most active cards, but as Joseph Saluzzi of Themis Trading notes, it’s very rare for the stocks to make up such a large part of the total trading volume as who did it. Monday. Zomedica shares, along with five other stocks trading below $ 1, account for 18% of the entire market.
A video request from Baskin on Cameo currently costs $ 299. Because of the number of paid messaging requests the Netflix star receives, Baskin says she was unable to remember who ordered the message requesting that she upcoming launch of Zomedica’s testing platform for disorders in dogs and cats. In Baskin’s video she echoes that “they think it’s really going to be a big seller.”
“It’s going to be fine. I just feel it in my cat legs, ”says Baskin before begging viewers to check it out.
After reaching Zomedica’s 40% increase in trade, Baskin expressed her doubts that she alone could influence the excitement.
“I find it hard to believe that my Cameo would affect someone’s inventory,” she said.
In a sign that speculation may have reached a tipping point, it would not even be the misplaced investor enthusiasm for the first time this week – and it’s Tuesday. Shares in the little-known healthcare technology company Signal Advance fell 50% on Monday after it was revealed that investors had piled up the stock incorrectly after a tweet last week from Tesla CEO Elon Musk. Musk tweeted about an encrypted messaging service called Signal in a Friday tweet that simply said, “Use signal.” It rose nearly 400% in Signal Advance shares the next trading day.
Whether Baskin’s calls will result in a sustained rally or a turnaround in Zomedica shares remains to be seen.
Zack Guzman is an anchor for Yahoo Finance Live, as well as a senior writer dealing with entrepreneurship, cannabis, startups and news on Yahoo Finance. Follow him on Twitter @zGuz.
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