TOMI Environmental Solutions Inc (OTCMKTS:TOMZ) stock has been making big moves lately. Investors who put their money on the stock at the beginning of the year have nothing to regret. The stock has already logged over 900% return for investors year-to-date. In the past week alone, the stock gained more than 280% to set a new year high at $1.13.
Notably, the surge in TOMI Environmental stock price has come on increasing volume. More than 9.8 million shares of TOMI Environmental changed hands last Friday, a single-day record so far in 2020. A total of 26.5 million shares changed hands in the past week, marking a sharp increase in volume as just 960,000 shares changed hands in the previous week. The huge volume no doubt confirms improving sentiment on the stock.
Investors are starting to see TOMI Environmental is the gift that will keep on giving as long as the coronavirus outbreak that started in China remains a global health concern. Additionally, TOMI Environmental stands out in the small-cap crowd for its strong balance sheet and improving profitability.
In a short while, we’ll see how the coronavirus outbreak has created a perfect business opportunity for TOMI Environmental. Moreover, you are about to see why this stock looks to be a rare gift for investors wanting to ride the virus outbreak wave. But first, here is a brief profile of TOMI Environmental.
About TOMI Environmental Solutions, Inc. (OTCMKTS:TOMZ)
TOMI Environmental Solutions is an American company engaged in providing decontamination and disinfection products and services. Its products are used for indoor and outdoor surface decontamination. Its clients include hospitals, cruise ships, hotels and more.
The coronavirus outbreak that originated in China in December last year has shaken the world. Nearly 90,000 people around the world have caught the virus, which has now killed more than 3,000 people. The coronavirus is both deadly and highly contagious. It can spread through the air and contact surfaces.
With new infection cases being reported every day, countries are scrambling to stop the spread of coronavirus. As a provider of disinfection and decontamination products and services, TOMI Environmental has become a central player in the global fight against the coronavirus outbreak.
China, Hong Kong, Thailand, Singapore, Israel and the UK embrace SteraMist from TOMI Environmental Solutions in the fight against the coronavirus
OTCMKTS:TOMZ built a high-tech fogging decontamination system called SteraMist. This system is designed for sanitizing rooms and buildings to stop the spread of infectious diseases. SteraMist has been used to prevent the spread of Ebola virus in Wester Africa. It was also used in the fight against SARS outbreak about a decade ago. Now SteraMist is being adopted in the fight against the coronavirus.
China has approved SteraMist to be used for decontaminate surfaces in the efforts to stop the spread of the deadly coronavirus in the country. China is the country that has been hardest hit by the coronavirus outbreak. TOMI Environmental is currently engaged in high-level discussions with Chinese officials about sale of SteraMist units to the government. TOMI Environmental has already shipped SteraMist units to Hong Kong.
The coronavirus outbreak has greatly affected business activities in China and Hong Kong. Therefore, they are looking for solutions to combat the virus quickly before it destroys their economies. TOMI Environmental stands to benefit from that as its SteraMist system has become the industry standard in surface decontamination in the war against coronavirus.
Thailand, Singapore, Israel and the UK are the other countries that have adopted SteraMist to treat surfaces as a measure to stop the spread of coronavirus. In the UK, for instance, SteraMist was used to disinfect a hotel in York city where the first case of coronavirus in the UK was confirmed. In Israel, SteraMist was used to disinfect the aircraft and vehicles that people with coronavirus arrived in from a cruise ship in Japan.
“The strong demand for our SteraMist surface unit is rapidly depleting our inventory… TOMI has placed orders with our manufacturer for additional [units],” commented TOMI Environmental CEO Halden Shane. “This is a dangerous virus that may remain on surfaces for at least nine (9) days and should not to be underestimated. [coronavirus] will most likely be with us for a long time, maybe years,” added Shane.
OTCMKTS:TOMZ strong balance sheet and ample cash reserve
TOMI Environmental looks well-positioned to take advantage of the business opportunity brought about by the coronavirus outbreak. The company has $1.14 million in cash reserve. It has a total of $8.6 million in assets against just $5.0 million in debt. The company reported a significant improvement in profitability in the third quarter as gross profit margin shot up to 71.2% from 53.1% a year ago.
Finally, while OTXMKTS:TOMZ has made big moves already, there is more room for the stock to rally further. At current levels, the stock can keep running given the fears over COVID-19.
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Disclosure: We have no position in OTCMKTS:TOMZ and have not been compensated for this article.