Huh? Dude stop. He said he is skipping the 40s and straight to the 50s....

It's pretty obvious at this point and now he said it and gave a timeline. It's really not complicated .

Multiple facilities, huge products coming, no real debt, revenues growing on current products. And so on

He doesn't want to run this company for the rest of his life.

Yeah. He referred to buyout. Dismissed the 5 years, said cut that in half at least...lol

Reality is that I am going to retire much earlier then planned?

You really don't know why you are here, do you?

Do you have an explanation for why you have been bashing this stock for 10 years? I suspect the answers are quite related..

LOL. How many shares are you still short? Does your boss tell you? I would bet you are secretly afraid of them dropping an approval or Concerta trial result....

How am I doing?

You really don't know why you are here do you?

P/E is not reasonable. The "market" is the OTC.

In the real world we would be looking forward. Towards the biggest products and continued growth. So the P/E should reflect that. It doesn't. It's looking at today. It should be looking to the next few quarters.

API is the only limiting factor on current sales and products.

Some overall thoughts

1) This company couldn't be more primed to be bought. Debt to asset like that is not common. It means many things. One is that they don't have overhangs holding them down. Means they aren't wasting that much money on interest which means they can be extremely price competitive. I suspect they are crushing in this area. They were already efficient.

And of course it means that whomever is looking to buy this company walks into a debt free , profitable cash machine in a very difficult market.

2) AR is way up . But also is Accounts payable. Who do they owe? Has to be API suppliers. Again these numbers should all be accounted for already and its cash flow questions.

Both numbers actually bode well. This is because they are spending tons on product API and they are getting paid tons. I would venture to say we are earning $5m a quarter. Interesting that number is earnings plus R&D but not how I came up with it.

So we are still at about a 10 P/E even tho the biggest revenue numbers are in front of us. Get off the OTC and that changes. In the real world we should be a 30-40 P/E because forward looking are billion dollar product not that far away.

3) I still believe there are tens of millions of shares to cover. These folks just play the game. They just need to win more then they lose. But it's getting deadly with the news events around the corner. An approval, filing, trial success of these big products will get recognized by the market. Numbers are too big.

I also see massive accumulating in the trading. Tension is building

4) we are very lucky. Elite is simply a math question at this point. Not everything will go out way or in the time we want. This board is about transfer of money from the impatient to the patient

I don't need everything to go our way. Just normal business processes. An approval here, market penetration there, another drug filed there.

You can't have a $10 Billion dollar pipeline forward looking and trade at a 10 P/E with a $200m cap. It's silly.

And pipeline is not NDA based. We don't need to cure cancer. We need to make stuff already being made. That said, watch them go for an NDA this year. Just a hunch. Or partner on one.

It's all over the place. And 22% is fine if that's what it was. Margins can be low if you are pouring money into R&D like we do. It's why I would take out the R&D to figure out the P/E.

Like if we stopped R&D today and just made the stuff we are making. It's imperfect but is perfect from a valuation perspective.

If we had zero margin but put everything into R&D we would have no earnings and a zero P/E.

And the shorts would say, it's not a profitable company. But on the contrary ...We are just reinvesting everything we make back into the company. What else should they do. Give out dividends?

That said our cash flow is getting better. Pay off the small loans , get rid of the overhangs. But the financials are already great.

Would like to see them take that AR money coming in and pay off debt but it's not what companies do. I look at it like I was managing my own finances. Pay off the credit card first.

They have account payables up a lot too

But I abhor paying interest

Well yeah. It was the plan from the beginning. Theater

N2K was the best at this tho.

You are welcome. Another thing to be aware of is Q to Q is not a great measure. YOY is better. 6 months in this situation is ok.

You can have big orders that get shipped at the end of a quarter or the beginning of the next. That can skew numbers quite a bit Q to Q.

Having an AR number bigger then your revenue number is a bit of an oddity except the company is rapidly growing so it's not unexpected. But it shows the trajectory pretty well.

I am curious if they get paid slower now by marketing themselves. I think Nasrat alluded to that but can't remember

Dude it's just your first day. Pace yourself

This board is still 80% theatre. Unless you believe that there is this great investing consortium in all these far away countries that are here to help you.

What I am posting is basic finance stuff honestly.

Unfortunately we are valued more like a straight manufacturing company like a machine shop, or a similar high volume facility that makes whatever stuff for people at high volume and low margin.

Note when I say valued , I mean that's how the numbers look towards the current P/E and cap.

Not like a company that can make billion dollar drugs that are hard to make, hard to get approved and hard to pass regulation, hard to market and in shortage. That's the OTC. But it won't be forever. Sand is quickly running out for that

The AR is the big number. Look at what it was 6 months ago and then last Q and then this Q. 3 to 10 to 16. It's as big as the current revenue. That is crazy

You don't need an MBA to see what is happening.

The debt to asset one is still what blows my mind. A lot of companies would take on more debt for products. It's kind of the American way these days but from a valuation perspective considering what is already in the pipeline and what it costs them to take a product from a tube to a trial, it's a license to print money.

And again still not including the the CNS drugs coming this year.

The other point about the debt is they have no overhang. Nothing sucking money away to interest charges with a currently very high prime rate.

That allows them to be extremely cost competitive. It can't be overstated

They have increased to $16m from $10m in Account receivables last Q. There is your $6m. At some point the stock has to look forward like normal stocks do. And multiple billion dollar products in either the trial, submission or approval phases pending in the immediate future. How low of a P/E should they have? lol

If anyone wants to know what a ridiculously strong balance sheet looks like. This is it. Most of the pharma's I look at, have reverse debt to asset ratios. 1:1 at best. this is .3. And that trend has continued into this quarter.

Note the Account receivables at $16m from 10M last Q and the inventory at $15m stable - This is the trajectory.

And again no debt overhang.

They will get bought out but their negotiating position will be extremely strong. Should get interesting with an approval and the next drug filing

That is literally you...lol.. a few posts down

You know he is a plant to be here? right? lol

Congrats Jimmy Joe

This company is going to get bought out. The balance sheet is ridiculous

Total Assets now $75m
Total Liabilities $28m ($5m of which is derivatives from warrants)

$16m in account receivables.
Inventory again at $15m

How dumb is it that a person has bashed a stock on a message board for 10 years and doesn't even know why they are there?

I'd post their initial statements but not messing with that right now. It's lengthy. Honestly just wait till Nasrat tells you his thoughts if he comments. He probably won't say much as anything he says could come back in court.

Some of Accords own arguments are Purdue contradictions in their previous arguments around patents on other cases. Again related to obviousness

Anyway back to the scheduled overseas goats working the early morning shift in their respective countries

I'd be more focused on Vyvanse and Concerta short term among other things. OXY is a few months away from discussion really

Docket last updated: 3 hours ago
Tuesday, February 13, 2024
94 ORAL ORDER. The parties are directed to file proposed findings of fact and conclusions of law of up to 60 pages each. The proposed findings of fact and conclusions of law should be filed within 60 days. The parties may file replies of up to 30 pages each, within 30 days after the filing of the proposed findings of fact and conclusion of law. Signed by Judge William C. Bryson on 2/13/2024. (ndw)

It all revolves around obviousness. And what is known and not new in the field. Nothing unique and would have been identified through trial and error to formulate.

Ovens, heating devices, polymers, plastics yada uaday

Both sides presented arguments, judge requested they provide their written legal arguments from both sides in 60 days, no more then 60 pages. Then they have 30 days from then to respond is how I read it.

Purdue is saying this is different

Accord saying no it's not and you just rehashing what was already ruled against.

Both sides have their technical experts who have already testified previously. Purdue seems to contradict themselves a bit

That's my free legal analysis. I did stay at a holiday inn last year ..so....

Call is Thursday. Earnings tomorrow after market close

If you want to read a great explanation of why Purdue lost to Accord. This does a great job. I don't see Purdue prevailing upon any appeal


https://www.jdsupra.com/legalnews/purdue-pharma-l-p-v-accord-healthcare-9240156/


https://www.jdsupra.com/legalnews/purdue-pharma-l-p-v-accord-healthcare-7316338/

On commercial success, the court found that reformulated OxyContin’s sales are the product of Purdue’s existing monopoly, not the claimed limitations. The court then dismissed Purdue’s evidence of industry skepticism, concluding that the inventor “does not serve as a stand-in for a POSA, or for the industry.” Finally, the court found that Purdue did not prove failure of others.

Relax Sybil Sheppard...

The other piece of course is demand and much of their product base including Naltrexone (not sure if still is) is in shortage. So the products sell themselves.

Because someone needs the stock at this level. That's why you are here right? Have you asked permission to tell people or do you really not know?

I suspect you dont know.

They had 11m in inventory that resulted in 14m in revenue

What does $15m in inventory get?

And part of that $15m was 7.5m in raw materials to end the quarter. Gonna guess much of that is Adderall. Question is how much of that is Prascos.

Because this has become more of a manufacturing investment (It's kind of not but that's how it's playing) a lot can be gleamed from the previous Qs numbers.

Really we should be trading on future upcoming products and growth. and one day we will

Your job sucks. They make drugs. Drugs everyone uses. Drugs that are in high demand and high shortage. They are making more and more of these drugs. It's as simple as can be. They have a 10 PE and that's before the biggest drugs are even approved. They have low debt and low overhead. It's a math question.

Do you think people are going to stop using Adderall? Lol


Why are.you here again? Still not allowed to say?

Lol. Looking for sellers? Sorry you sold

11 to the past or 11 to the future....lol

You know any OTC stocks where we talk about P/E ratios? or low ones? lol

Current stock price has nothing to do with Elite's value. Folks that want it here, want it here. For today.

One day the stock price will be sort of relatable to the company's actual value. Multiple drugs pending approval and trials and filing. Billions in drugs..

In the real world, the market would be looking forward on Elite. At some point in the not too distant future it will.

IB, are you trying to buy your shares back or is this a cover play? Seriously, life is short. Lost a good friend this week. A remarkable human being.

Do something positive with your life. It can happen. Even for you. You don't believe any of the nonsense you are posting.

You don't actually know why you are required to be on this board...do you?