When it comes to small-caps, there is good and there is great.
Zoono Group Ltd [ASX:ZNO] is certainly a part of the latter. At least, in the past couple of weeks.
Over the past two days the stock has almost doubled in value. And from mid-October, the share price is up close to 300%.
Today, Zoono has backed up that trend with another lift. At time of writing the share price is up just shy of 30% in early trading.
So, what’s behind this dream run?
In one word, pigs…
Zoono, at its most fundamental, markets and sells hygiene products.
Their range includes a variety of wipes, sprays and sanitisers. Products that are specialised for fighting germs for longer.
However, this shallow reading overlooks the real depth behind this company. See behind the simple products is some genuine science. All of which is based upon the ‘zoono molecule’, hence the name.
What makes this molecule unique is its ability to bond to surfaces and kill germs. A quality, to date, that has proved very effective.
Yesterday, Zoono announced a major breakthrough. They may finally have a solution for African Swine Flu. The virus that has been ravaging pig populations right around the world.
China has borne the brunt of this pandemic. It is believed up to half of their pig stocks have been wiped out.
Zoono may finally be able to offer some relief, as their investigation found:
‘In conjunction with several pig producers, Zoono has been conducting trials in pig pens in China with outstanding results. Within the Zoono treated pens (after 21 days), there have been no AFS virus infections or pig fatalities, compared to numerous infected and deceased pigs in the control pens over the same 21 Day period.’
If this data holds up under further testing, then it truly could be the miracle China’s farmers need.
But for the local Chinese agribusiness sector, time is of the essence. Which is why today, Zoono announced a distribution deal with the desperate nation. Agreeing to a 10-year term that will rake in a minimum of NZ$17 million in the first three years.
Safe to say, this is a once-in-a-lifetime deal. An instance of the right product at the right time and that’s been reflected in the company’s meteoric rise of late.
Not that this surprises us.
Explosive gains in biotech/agritech stocks are common. A reflection of the high risk and high reward nature of the sector. Which is precisely why we’re interested in it.
In our daily publication, Money Morning, you’ll often find us discussing companies like Zoono. Just last week my co-editor, Ryan Dinse, covered the emerging health-tech trend. An industry that is very closely aligned with Zoono’s own rise.
We believe these rapid fire market opportunities are a fantastic way to grow your wealth. Which is why you’ll find us talking about the big trends that can uncover them. If that is something up your investment alley, then click here to learn more.
For Money Morning