January 22, 2012

Why I Shouldn't Be Long Provectus

Previously, I wrote an open letter in which I shared my investment thesis in depth and described why Provectus is an exceptional long idea. See here.

In any investment I have made or will make, I feel compelled to try and, arguably, find myself often obsessed with trying, over time, to figure out if I am wrong in the event I am indeed wrong. After a successful monetization, I enjoy the moment for a moment. Then, I grind away again over the next investment or investment candidate. Lather, rinse, repeat.

I continually wonder if I shouldn't be long Provectus. What is the anti-thesis of, or antithesis to, my investment thesis? Understandably the crux of a robust investment thesis typically is or should be about management, and the probability or likelihood of their successful execution. Below, I am primarily focused on the investment value proposition, including but not limited to:
  • Knoxville is not the/a hot bed of biotechnology in the country;
  • The management team has not brought a drug compound to market;
  • There is no "name" investor in the stock;
  • The company has no partnership with big pharma;
  • The company's virtual business approach, whereby they are outsourcing or leveraging outsourced capabilities to efficiently run several processes, is not typical; and,
  • There is no plethora of peer-reviewed literature.

I have answered these questions to my satisfaction some time ago; however, I think it is informative to share them with you.

Disclaimer

This blog is neither intended to be nor is investment advice. The author of this blog (the "Author") is not a registered investment advisor. Under no circumstances should any content from this blog be used or interpreted as a recommendation of a trade or investment in Provectus Pharmaceuticals, Inc. Trading and investing can be hazardous to your wealth, health or both. Any investment decision must, in all cases and without exception, be made by the reader or by his or her registered investment advisor. This blog is only and strictly for educational and informational purposes. The Author may have a position in Provectus Pharmaceuticals, Inc. at any given time that is not disclosed at the time of publication. All opinions expressed by the Author are subject to change without notice. You, the reader, should always obtain current information and perform the appropriate due diligence before making any investment or trading decision.

All efforts are made to ensure the information contained in the blog and/or a blog post is factual and accurate; however, the Author does not guarantee its accuracy under any circumstances.

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