Provectus Biopharmaceuticals Inc (PVCT)

[Mokyo Toe]

Let's not forget market capitalization, which is $30.4 million.

For a biotech company with three dozen patents, a phase III trial underway, and additional drugs in Phase II and Phase I, $30.4 million is a joke.

How much of a joke is it? Take a look around iHub. Look how many fake companies with zero business have 10 billion shares floating out there at something like .0034 apiece. Dozens, if not hundreds.

Real pre-revenue biotech companies with real work being conducted often have market caps in the hundreds of millions. Biotech is a world of speculation because when it does pay off, it does so in the billions.

PVCT's market cap is tiny primarily for four reasons: the scandal and subsequent SEC investigation, the financing emergency that followed, the dilution that occurred ('the ratchets') around that time, and doubts that the company would resume its work or that its work still held any promise.

All of those were very valid reasons not to buy PVCT. However, they were all baked into the share price a year ago, when this flirted with sub-penny. Since then, the SEC investigation ended, we have received a steady stream of good, substantial news and data since September, financing was secured (and likelihood of more financing is increasing with performance), studies are being updated... Plus, we had an inside buy.

Strictly in the sense of comparable companies' market caps, PVCT has fulfilled a tiny fraction of its potential. There's still room for a 5x-10x pps increase from here without the company making a dime in revenue. The better the pps performance, the more speculators it will attract.

Over at Investor's Village, the latest conversation is about how big the selloff will be next week... I could be very wrong about this, but I am not smelling any selloff coming. I think, a few stray profit takers aside, that this is going to continue ticking up, little by little until February's liver data comes in.

All this is just imho, and it is only speculation. But I've held this stock all year, through a few false rallies, and the trading is different now. As should be expected, buyers are arriving.