Plus Therapeutics Plunges 38% on $15M Upsized Offering: A Bearish Storm Unleashed

Summary
• PSTV’s stock nosedives 37.9% intraday to $0.2919, erasing 61% of its previous close value.
• The company priced a $15M unit offering at $0.38, triggering immediate selloff pressure.
• Turnover surges to 26.2 million shares, reflecting heightened investor anxiety.

Plus Therapeutics (PSTV) has become the day’s most volatile stock, collapsing 37.9% as its $15 million upsized offering priced at $0.38 per unit ignited a bearish cascade. The offering, announced just hours before the selloff, includes 39.5 million units with warrants, signaling capital-raising urgency. With intraday trading between $0.2559 and $0.3012, the stock’s freefall underscores investor skepticism about the company’s financial health and growth prospects.

Upsized Offering Sparks Sharp Selloff
The 37.9% intraday plunge in PSTV’s stock is directly tied to the company’s announcement of a $15 million public offering priced at $0.38 per unit, a 22.8% discount to its 52-week low of $0.4701. The offering, upsized from an initial proposal, includes 39.47 million units with warrants exercisable at $0.38, diluting existing shareholders and signaling capital constraints. The 30-day over-allotment option for an additional 5.9 million shares further amplifies dilution risks. Investors interpreted the move as a sign of financial distress, given PSTV’s negative EPS of -1.91 and zero revenue, triggering a liquidity-driven selloff.

Technical Deterioration: Bearish Momentum and Oversold Signals
• 200-day SMA: 0.5449 (well below current price)
• RSI: 33.49 (oversold territory)
• MACD: -0.0194 (bearish divergence)
• Bollinger Bands: Price at 0.2919, 56% below the lower band (0.4814)

The technical landscape for PSTV is dire, with RSI approaching oversold levels and MACD confirming bearish momentum. The stock is trading 48% below its 200-day SMA, indicating a deepening downtrend. Bollinger Bands show extreme compression, suggesting a potential breakout to the downside. With no options liquidity to exploit, traders should focus on short-term volatility. A 5% downside scenario (targeting $0.2773) would test critical support at $0.2559, the intraday low. Aggressive short-sellers may consider a bearish breakout play if the stock closes below $0.2559, but caution is warranted given the stock’s high volatility (115.69) and beta of 1.36.

Backtest Plus Therapeutics Stock Performance
Plus Therapeutics (PSTV) has experienced a significant intraday plunge of approximately -38% from February 22, 2022, until now. Let's analyze the stock's performance during this period and assess its recent trajectory.1. PSTV's Performance Since the Plunge: - On February 22, 2022, PSTV was at its peak price. - After reaching its peak, the stock faced a substantial decline of -38%. - The stock's performance since then has been volatile, with a general downward trend.2. Recent Trajectory: - As of the latest data, PSTV has not recovered significantly from the February plunge. - The stock has fluctuated, with no major upswings that would suggest a strong recovery.3. Current Status: - PSTV is still trading below the levels seen before the February plunge. - The recent price point is a reflection of the market's sentiment and the company's performance since the partnership with Medidata was announced.4. Market Sentiment and Company Developments: - The partnership with Medidata has been a key development for PSTV, aimed at accelerating enrollment and reducing costs in clinical trials. - The company has also presented preliminary safety and feasibility data from its clinical trials, showing positive results. - Additionally, PSTV was awarded $17.6 million from the State of Texas to support the development of its lead investigational targeted radiotherapeutic, Rhenium-186 NanoLiposome.5. Conclusion: - While PSTV has not recovered from the significant plunge, the company's developments, including its partnership and funding, suggest a potential for future growth. - Investors should consider the long-term potential of PSTV's therapeutic advancements against the backdrop of recent market volatility.

Act Now: PSTV’s Freefall May Continue as Capital Constraints Bite
The selloff in PSTV is far from over, with technical indicators and capital-raising dilution pointing to further downside. Investors should monitor the $0.2559 support level and the 52-week low of $0.1634 as critical thresholds. Meanwhile, sector leader Amgen (AMGN) rose 0.25%, highlighting the contrast between capital-stressed biotechs and industry giants. For PSTV, the immediate priority is closing the $15M offering on January 15, but even this may not halt the freefall. Short-term traders should brace for a test of $0.2559, while long-term investors should avoid the stock until it demonstrates a clear path to profitability. Watch for $0.2559 breakdown or regulatory reaction.