Has Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) Bottomed?
Surfacing from a rough week that pressed the share price of Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) nearly a dollar down, the company managed a solid green close on Monday, putting on almost 50% in a single session. Share volume was restrained compared to the last couple of volatile weeks, at just over 3 million shares.
We previously took a closer look at PVCT, the company’s flagship PV-10 product for melanoma treatment and the sudden spike in investor interest brought about by the news company released in mid-December. Provectus announced a meeting with the FDA in the final days of 2013 and investors, partly encouraged by some aspects of the PR, swarmed to PVCT and kicked it into heavy-volume trading, continually pushing the price up.
A run from $1.00 to $5.20 in a little over a month is next to impossible to sustain. Things escalated that far in the first place because traders drove themselves into a self-induced frenzy on very little hard information available regarding the outcome of the meeting. PVCT got some very negative press coverage on the web and that happened right when the price was soaring.
The combination of PVCT‘s share price getting a little too high too fast and the article in question led to a painful drop that shaved more than $3.3 from the share price in a single day. On the very next day the company came up with a new press release and an official 8-K filing disclosing what guidance they received from the FDA.
While those who bought PVCT all the way up to $5.2 expected far bigger news in the 8-K, including the FDA granting a breakthrough designation to PV-10, they got less in the filing, including a recommendation to PVCT to conduct an additional bridging study.
PVCT just stood and rolled with the punches for some time but yesterday’s strong session with the price opening up out of the gates and climbing through the day may indicate that the ticker has bottomed around $1.25 and may be in for a further bounce in the following sessions. Still, considering the significant volatility over January, anything is possible.
