Provectus Pharmaceuticals, Inc. (PVCT.OB)

Today’s penny stock pharma pick is Provectus Pharmaceuticals, Inc. (PVCT.OB).  It is another one of those pharma plays that has what I look for in a pharma company:

1.  Promising Drug Candidates

2.  Cash in the bank

3.  Manageable debt

4. Beaten down chart

PVCT, a development-stage pharmaceutical company, through its subsidiaries, engages in developing, licensing, and marketing over-the-counter (OTC) products, prescription drugs, and medical device systems in the fields of dermatology and oncology.  Provectus Pharmaceuticals has developed various intellectual properties and technologies in the areas of imaging, medical devices, and biotechnology. The company was founded in 2002 and is based in Knoxville, Tennessee.                                                                         source: Yahoo! Finance

PVCT has two major drug candidates; PV-10 which is a therapy for metastatic melanoma and other cancers and PH-10 which is a topical treatment for a wide range skin conditions (psoriasis, atopic dermatitis, actinic keratosis, and severe acne).  The company also is designing a suite of medical device systems include therapeutic and cosmetic lasers for cosmetic treatments, such as reduction of wrinkles and elimination of spider veins, and other cosmetic blemishes; and photoactivation of PH-10 other prescription drugs and non-surgical destruction of certain skin cancers

Rather than regurgitate/update how the company is doing, I will direct you  to their latest PR that updates shareholders on the company’s progress (sounds positive, by the way) – click here for link.

What is important to know is that PVCT has the financial wherewithal to make it through this next round of clinical trials.   The company has come out and said they have “ample cash” and with no debt, I think that PVCT might be a good position trade (several months probably).

Insiders own almost 17% of the company, but they haven’t attracted much institutional interest.  Their latest PR (linked above) intimates that could change.

Let’s take a peek at the chart:

According to the company, they are planning a major announcement in conjunction with their Australian trials at Melanoma 2010 Conference in Sydney, Australia, November 4-7, 2010.  Good news there could make this stock jump.  In fact, any news could make this stock jump.  My crystal ball is telling me to expect good news, but there are no guarantees.

Here is what I am looking at for entry/exit points

Last Close:              $1.05

Buy Opinion:          $.90 – $1.15

Short Term Sell:   $1.45 (45% gain from $1 purchase price)

Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

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