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Good question. They have only needed 2-3 billion to dilute this down to .0001 in the past. I think they could probably get it back to .0001 with less than a billion this time, but for some reason they felt they needed to increase the AS to 6 billion. Perhaps they just feel more is better?
it is fine to post opinions, but when the number of OS is posted incorrectly I believe that it should be immediately pointed out as it is one of the first things people look at when investing.
Please keep to the facts. There are not 400 million outstanding shares. There are 267 million oustanding with a float of 239 million. this information is easy to find.
http://ih.advfn.com/p.php?pid=squote&symbol=ELTP
Last year I threw exactly $100 at HSCO. I knew what it was and figured I had about as much chance of doubling my money as I would on a slot machine. my shares are worth $4 now. I gambled and I lost, and I'm ok with that. I just hope that anyone buying in knows what is going to happen here.
HSCO did a 1000 to reverse split leaving about 3 million shares outstanding. Including what was held by company criminals, I mean insiders. There are now 260 million outstanding shares. and here is where they came from
On March 5, 2012 the Company the Company issued an aggregate of 107,000,000 shares of its Common Stock to 5 individuals/entities, including 40,000,000 shares to Michael Zoyes the Company’s CEO, Presiident and a Director, 20,000,000 shares to Peter Ruggeri, the Company’s CFO and Director and 20,000,000 shares to Dominick Falso, the Company’s COO and Director. These shares were issued as compensation in lieu of salary. The shares were issued in reliance upon the exemptions from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Act”), pursuant to Section 4(2) of the Act. The certificates evidencing the above mentioned shares contain a legend (1) stating that the shares have not been registered under the Act and (2) setting forth or referring to the restrictions on transferability and sale of the shares under the Act.
5
In March, 2012 the Company issued an aggregate of 150,000,000 shares of its Common Stock to 11 unaffiliated individuals/entities upon the conversion of $15,000 of outstanding indebtedness. The lenders loaned the Company the monies in 2010. The certificates evidencing the above mentioned shares were issued without legend in that Rule 144 permits the lenders or their assignees to tack back to the date of the debt which was more than one year prior to issuance.
http://www.otcmarkets.com/financialReportViewer?symbol=HSCO&id=82158
They clearly have a plan that is being executed. It will be interesting if they share any of it during the conference call.
I really don't think you understand what the patent is all about, and it's value to Elite. Was the patent a "game changer" for the PPS? No, why would it be? They didn't cure cancer, but they did lay the foundation for what can be the "game changer" for Elite's future. The patent gives them protection from someone copying their technology for a set amount of years. It also helps them in their quest to find a partner for Phase III testing. This is where we start to see an impact to the pps. Having a partner will give them the needed money to conduct the trials. Once they have an approved drug they can gain entry into a market with billions of dollars of potential. This is how the patent becomes a game changer for Elite. Please keep in mind that approval is likely 3-5 years from the beginning of phase III. For now the biggest catalyst to moving the pps will be increasing revenues by adding more generics and becoming profitable. This is where we will see progressive growth while we wait for the big pay day.
So yes, if they get another patent I expect a run up and then sell off on the news. It's an event that everyone knows when it will happen because of how the patent process works, which lets people buy ahead of the PR to sell when its announced. It's how the stock market works and is not an indictment on ELTP.
This will be interesting if it is approved as quickly as the last patent. We will have another event that we will know about well in advance of the PR. We'll probably see the same rise in pps and sell off into the news. It will be fun to see who learned from the last time and who didn't.
There is a lot of money to be made by keeping people on medication. Probably a very good reason there are entities that don't want Elite to be successful.
Wow, great research and analysis. Thanks
What do you think the cost would be to certain big Pharma companies to have an abuse proof version of their drug on the market? That could really impact their bottom line, perhaps enough for them to have an interest in seeing ELTP delayed as much as possible??? There is a lot of money being made by feeding people's addictions.
When I saw your post I immediately dismissed the dollar value attached to each pill because I couldn't believe that anyone would pay that much for a single pill. Then I looked it up and found this:
How much does OxyContin™ cost?
•
When legally sold, a 10-mg tablet of OxyContin™ will cost $1.25 and an 80-mg tablet will cost $6.
•
When illegally sold, a 10-mg tablet of OxyContin™ can cost between $5 and $10. An 80-mg tablet can cost between $65 and $80
http://www.justice.gov/dea/concern/oxycontin.pdf
Just a reminder for the board to please stay on topic, which means discussing ELTP.
http://ihwiki.advfn.com/index.php?title=FAQ:Deletions_and_Restores
Can someone post what was said in a private message if they don't actually copy/paste it? No. Private messages are just that…"private". Public discussion of the content is inappropriate and violates the site's rules.
A Member just posted some great dd (due diligence) on the company and in the very last line he called another Member an idiot for his previous posts. If the majority of the post is okay, why do I have to delete it? If a post is 99% on topic and 1% personal attack it still needs to be removed. Personal attacks in any form are disrespectful of others and are unwelcome on the site. These types of gratuitous comments also create noise and dilute the quality of the board. When a Member attacks another poster, other participants inevitably feel the need to respond, either agreeing or defending. Then others feel the need to respond to these…and so on and so on ad nauseam. Pretty soon the board has devolved into personal attacks and discussion about other Members, i.e., noise and no signal. There are plenty of other sites that allow these types of posts and it is difficult to find any meaningful content on such sites. The goal at iHub is to have all information, whether positive, neutral or negative, discussed in a civil manner, free of personal attacks.
umm, no. Growth and value is shown in their quarterly and annual SEC filings. Their annual filing will be submitted in June. This is where you can judge what Elite has done in the past year and where it is headed for the future.
I didn't say the pps means nothing. I said the pps means nothing to the bottom line of Elite, outside of possible share conversions which could eliminate dividend payments. Otherwise the day to day pps means nothing to ELTP as a company. Their daily operations are unaffected. What they do and what they produce remain unchanged.
The day to day pps means something to the people that own shares. That is the bottom line. Elite will continue to execute its plan to create shareholder value through incremental growth to their pipeline and revenue.
I have no knowledge of those companies and I don't really care. If the pps not going up based on the patent news isn't your problem with ELTP then I really don't think anyone can help you as you clearly don't believe that ELTP is worth investing in. Nothing that has happened to the pps in last week/month/year means anything to the bottom line of ELTP. Either you understand that or you don't.
poorme, Since you are so hung up on the patent can you tell me what your opinion be if the pps went up to $1 on Tuesday? Would you now think that the patent is of great value? If so can you explain to me why?
so the overhang isn't as daunting given the amount of time that has passed?
if the buying had been done last week instead of last year would it be as significant? Or does the time of purchase not factor in?
what does the overhang at .18 tell us?
ELTP certainly tests the confidence in your investment with it's wild swings. I understand why people get nervous, but at the end of the day I believe that ELTP is on the path to success.
Of course there are people promoting their own agenda. That is life. You need to separate the facts from opinions. One thing you seem to be hung up on is the amount of time it takes to deliver the products. It is a fact that we have an agreement with Epic for 8 drugs. the point of contention is how long it takes from start to finish. If someone says they are "coming soon" that can mean different things to different people. My research tells me that getting a drug to market can take anywhere between 1-3 perhaps longer depending on what type of drug it is. So when I see that these drugs are being developed I'm already assuming it will be 3 years from now. I don't know their capabilities in handling one or multiple drugs. How many can they work on and what stages are they in? not sure exactly, but I'm confident in the plan that Elite is executing and I'm willing to let it run its course. You need to mix in your own research to identify your comfort zone on how long you are willing to wait for certain things to happen. Right now it seems that you are at the end, which is fine. I'm just advocating that perhaps doing research outside of the this message board would benefit you.
perhaps the word developing should be used instead of making? Would that clarify the situation?
I'm having a hard time understanding if you are serious with these questions. I want to believe you are an actual investor that needs help understanding their investment. Therefore, I will attempt to help. I hope I'm not wasting my time.
Of course they did NOT give the money away for free. They got preferred shares which pay dividends until they convert to commons. yes these shares dilute the total common share count. However, you need to understand why they did this.
Take a look at the chart I made that is at the top of the Message board. It shows some key financials since 2007. Prior to our current CEO we had operating losses on average over $10 million a year. Revenue was almost non-existent as I believe they didn't have any products back then. Treppel was brought in to fix the problem. They needed cash to continue operations. They way to do that is to sell products and to raise funding through the sale of stocks. The agreement with Epic does both.
The only other option for Elite at that time would have been to sell shares publicly. If they had done this all the shares that Epic can convert to would be in the tradeable float, and we would likely be sitting under .01 at this time. Epic must file with the SEC whenever they buy or sell their shares, so we know their total share count. These shares have not hit the public so while they have an overall dilutive effect they don't have the same effect on trading as if they were public. Epic could sell these shares at any time and pull the plug on ELTP, but it doesn't seem likely. The two companies are very intertwined and have been working together to increase each other's value.
Bottom line is Epic gains value as Elite gains value. It is in their best interest to see the PPS go up.
I've said all along that we want to see gradual pps increases based on the continued progress of the company. I believe that is what will happen throught the course of the year. Stop focusing on a sprint. This is a marathon.
Yes, but you seem to have forgotten the part where Epic handed over $3.75 million. This has allowed Elite to stay in business while building their product line. I really think you need to research the financial side of companies more and how they raise funds.
poorme,
You really need to do your own research to answer the questions you have. Some of your questions can be completely answered by reading through Elite's SEC filings. Others will require you to dig and read things like market studies, white papers and other articles that will give you a base knowledge of what you can expect to see for results from Elite.
For example the true value of the patent is very subjective at this point. I have my opinion based on the research I've done. Same goes for how long it will take to bring the product to market. Based on what I've read I don't expect it anytime soon, and I'm ok with that.
As for your question about paying Epic to manufacture their drugs, that is not what is happening. Epic invested $3.75 million in Elite. In turn they were given Preferred Shares which pay dividends. To protect their investment they agreed to allow Elite to manufacture some of their products.
Everything is explained in the filings. If you read them and understand what they mean then you will not need to worry about anyone's opinion on a message board.
Here is the Epic Alliance:
http://www.sec.gov/Archives/edgar/data/1053369/000093041309001530/c56987_8k.htm
On March 18, 2009, Elite Pharmaceuticals, Inc., a Delaware corporation (the “Registrant”), entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with Epic Pharma, LLC, a Delaware limited liability company (“Epic”), and Epic Investments, LLC, a Delaware limited liability company and wholly-owned subsidiary of Epic (the “Purchaser”), pursuant to which the Registrant will commence a strategic relationship with Epic, a pharmaceutical company that operates a business synergistic to that of the Registrant in the research and development, manufacturing, sales and marketing of oral immediate and controlled release drug products. Under the Alliance Agreement (i) at least eight additional generic drug products will be developed by Epic at the Registrant’s facility with the intent of filing abbreviated new drug applications for obtaining United States Food and Drug Administration (“FDA”) approval of such generic drugs, (ii) the Registrant will be entitled to 15% of the profits generated from the sales of such additional generic drug products upon approval by the FDA, and (iii) Epic and the Registrant will share with each other certain resources, technology and know-how in the development of drug products, which the Registrant believes will benefit the continued development of its current drug products. In order to provide the Registrant with the additional capital necessary for the product development and synergies presented by the strategic relationship with Epic, Epic will invest in the Registrant through the purchase by its wholly-owned subsidiary, the Purchaser, of $3.75 million of newly issued shares of the Registrant’s Series E Convertible Preferred Stock, par value US$0.01 per share (the “Series E Preferred Stock”), at a price of US$1,000 per share, each share convertible, at US$0.05 per share (the “Conversion Price”), into approximately 20,000 shares of its Common Stock, par value US$0.01 per share (the “Common Stock”), subject to certain adjustments. A copy of the Alliance Agreement is attached to this Form 8-K as Exhibit 10.1 and this summary of the terms of the Alliance Agreement is qualified in its entirety by reference to such Exhibit. Pursuant to the Alliance Agreement, Epic has agreed to guarantee the performance by the Purchaser of its obligations under the Alliance Agreement.
I agree with your trading philosophy. I'm a DD person and I'm long on ELTP because of what I believe to be a solid future. I'm also flipping shares a long the way only to increase share count, but I'm admittedly not that good at it either. I've done ok, but bad timing means I'm leaving a lot on the table, particularly this last run. I expected upward movement once the PR came out, but it was mostly a direct sell. I'm not concerned one bit because I know there will be many more opportunities along our way as ELTP continues to build value. Although, becoming a better trader will allow me to substantially increase my overall investment without risking more money.
I've seen these types of site lift information directly from an IHUB post before. In fact they were given wrong information and then sent it out in their "newsletter". Not a lot of DD goes into these write-ups.
Thanks for posting this. It is fairly easy to understand, but I'll need to watch it play out a bit to be able to use it properly. Would you say that if this consolidates for a few days at the current level that it would be an entry point for swing traders to enter before the next upward movement?
I know that you are hardcore on technicals, but I simply don't believe gaps must fill for a technical reason. They may fill but often they fill because of people, and how they trade based on what's going on. ELTP has long been held hostage by flippers and it is evident in the past 2 days of trading. We may well fill the gap, but it is simply a reaction to what has happened at this point. We can fill or not fill, I don't care either way.
Ultimately, ELTP needs to rid itself of the type of trading we are seeing now. The only way to do that is for them to put out financials that show profit and then continued growth. Which I believe we should start to see this year. Then we will see the growth in pps that we are all looking for.
Zero bid support.
Open at .1451. Seriously???
well, that is definitely interesting. good luck
Discussing ELTP is about informing people not influencing.
Elite was profitable with only Lodrane, but it took time to get there. Lodrane was pulled, so they lost their main source of revenue. Now they have 4 drugs with more coming. Sales don't happen the second a drug is launched it takes time to build the revenue which is what is happening. The financials (last 10Q) proved that is occuring with only 2 drugs launched. Why wouldn't they continue to grow revenue with 4 drugs?
I have some friends that work for a hedgefund that manages over $12 Billon, and they have never heard of ELTP. OTC stocks aren't even on their radar for the most part. This news isn't a secret, but much of the investing community has no idea because they don't ever look at OTC stocks. Elite needs to show sustained profitability along with offering longterm high growth potential. This patent lays the groundwork for the longterm big payoff. The following months will begin to show profitability. Then we will begin to see larger investors coming in, which will give the PPS the steady increases we are looking for. Looking for a huge spike from the patent news alone is misguided, as it likely wouldn't be sustainable without more news regarding clinical trials and partner announcements.
I wonder if the OTC newsletters aren't publishing anything because they have been accumulating these past few weeks? I wouldn't be surprised if they start putting things out after the patent is issued and then sell into their own announcements.
I see it. thank you. Can anyone point me to where it is designated as an "also ran patent"? I'm not seeing that. Is there a a check box or something I'm missing?