November 17, 2011

Management Does Not Care About Shareholders

Ahhh...a little bit of shock blogging! How else am I going to get your attention? Who's actually reading this blog anyway?

Management does not care about shareholders. Really?

Like jokes we make to friends or acquaintances, there often is a grain of truth in our words, and context as well. Provectus' constituencies consist of (in order):
  • Patients;
  • The FDA;
  • Big pharma; and,
  • Shareholders.
Putting aside patients for this post (management's view on this is indeed interesting, admirable and believable), you will hear Craig Dees repeat over and over that the company's two primary constituencies (aside from current and future patient health prosperity) are the FDA and big pharma.

The FDA: The approver. Big pharma: The buyer. Remind me again where shareholders, in the near-term -- that is, before the end-game -- fit in?

Admittedly, and I will blog in more detail about this later, focusing on the needs of the FDA and big pharma can run opposite to the needs of most shareholders, who want a higher share price to sell their holdings, rather than holding out for the end-game that could well see the share price optimized by management's efforts to best serve the FDA and big pharma.

In my view, if Provectus makes the FDA and big pharma sufficiently happy (together with patients suffering from cancer), management will have demonstrated in a real way -- the only way that matters to investors -- that they truly do care about shareholders.

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