Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) Sliced by a Quarter

After another crash in yesterday’s session, Provectos Pharmaceuticals, Inc. (OTCMKTS:PVCT) effectively returned to its price level from before the mid-December rally that escalated into January’s peak of over $5.0 per share. The ticker lost 26% in a single session, stopping at $1.44 per share, with volume swelling back up, at over 7 million shares traded.

The company’s share price has taken a pretty heavy beating but this was more or less predictable, considering the scope of the upward swing that came before it. The situation around PVCT escalated quickly after the company announced it was going to a meeting with the FDA in December. Even though the press release itself made no promises, it did drop some hefty words such as ‘breakthrough therapy designation’ and ‘accelerated approval’.

Overly-enthusiastic shareholders didn’t wait around for any further confirmation and jumped on PVCT. Even though the company announced that it was simply seeking going-forward guidance from the FDA, some seem to have imagined breakthrough designation was immediate and heavy trading sent the ticker soaring to dizzying heights in mid-January.

A very negative article on PVCT was published around the time the price reversed its movement. On the same day the ticker went through the floor, dropping 64%. All things considered, the crash was largely bound to happen because of the technical movement of the price, which got ahead of itself in a very short amount of time. Such movement is usually impossible to sustain, even in the presence of actual breakthrough news.

The most recent announcements from PVCT following the receipt of the FDA minutes contained no such earth-shattering news and the price is being hammered once again. Traders are, as usual, blaming the evil shorters instead of taking a step back and realizing how far PVCT got on speculation and inflated expectations that were not backed up by facts.

The company still has a product that has undergone Phase 2 testing on its hands, as well as a healthy amount of cash, so nothing has gone terribly wrong here, except people losing money due to inflated expectations they created themselves.