Elite Pharmaceuticals Inc (ELTP)

[Dante Fantasia]

Really, what I see as the biggest issue/concern with decline in sp is that it makes acquisition that much cheaper--to the extent where the poison pill becomes quite a palpable premium for a larger fish to swallow.

Of course, the upside of that would be a nice price on the buyout. Let's just say it's 1.50...it's almost a 5x multiple of now, and everyone makes money, some a lot. There is something to be said about "a bird in the hand." Conversely, if Elite gets their generics up and moving, in conjunction with an ART approval early-mid 2015, the sp will be far above 1.50, so many holding for this scenario don't see a takeover as a positive. Whatever--even a buyout scenario benefits from an increased sp...2.00 is better than 1.50. Thing is, once that first ART drug is approved, and they have 12+ more coming down the line, the price of buying Elite goes up exponentially. If you were a Pfizer, when would you want to buy, given the risk?

As an aside, personally, NH paying off the debt hit the nail on the head for me. Not only did he loan the company his own money, but took off the "going concern" out his own pocket. Money talks, and in this case loudly, given his reputation in the pharma field. Seen a lot of "promising" pharma/bio's come and go, with the company jonesing for dollars while they took huge salaries, making money riding it into the ground. If this isn't the opposite, I don't know what is. Ultimately, when I get depressed looking at the sp (and I do sometimes), I just think of this, the opioid market, and demand for ELTP's product, and go to sleep without the worry some stocks have caused me in the past.

GLTA--Maz