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Completely disagree. Timing isn’t right. Let’s survive post Lannett split and actually get some new products flowing driving new revenue and new interest. International growth would be nice to see as well. Looking forward to seeing profitability without Lannett and hopefully soon, without Mikah’s ownership of Adderall.
So what? To prevent 10 more individual retail stockholders from buying 5 shares a piece?
This change has absolutely nothing to do with where the real money is - investor funds, namely passive funds. More stock ownership today is held in passive funds than active. The stock needs to qualify for a higher exchange and specific fundamentals to draw new ownership from investment funds. While the CEO plays pick up sticks with CFOs our stock languishes and a whole peso can just about buy you two ELTP shares.
The restrictions on OTC buying are anything but new. This simply shows the management’s awareness of the shareholder concerns and ignores them. There is only one shareholder the CEO cares about.
Not paying interest was strategic in nature. This won’t be a chapter 7 with insulin glargine to be realized over next couple years. No need for ch 11 either if they can successfully negotiate with key creditors. One option discussed which was a debt to common equity conversion, which would significantly dilute current shareholders. Either way, Lannett will be around for many years to come. I just wouldn’t buy their stock right now. :)
They can prove it with their financials and not mere words. I’m sure pharma world is shaking in their boots.
Potential negative cash flow would dictate otherwise due to revenue drop. I’ll certainly be looking at current quarter as well.
What is there to say that he hasn’t said already? I want to see results. Next 2 quarters post-Lannett will be telling.
Now they can start building inventory to ship.
If they don’t succeed in moving away from Lannett, then the share price could go much lower as there’s no revenue to hold this up. I am expecting we’ll be just fine, but will have some hiccups along the way. We always do.
10Ks say Mikah was winding down for several years, but apparently wasn’t really the case.
Precisely. They need to uplist after successfully transitioning away from Lannett with new products. Tiny bread crumb products aren’t going to move the stock price.
I agree with your commentary. This stock is on the OTC with no buyers to drive the stock up. This does happen on larger exchanges with significant fund ownership, but not the case here.
Would be nice to first see a drug application for generic Vyvanse before counting it a done deal.
Was discussed last cc during CEO commentary. DEA didn’t permit Elite selling inventory for Lannett while simultaneously building inventory for self distribution post split.
That’s one of the issues. They don’t have product. DEA said they couldn’t build their own inventory until after deal finalizes. We shouldn’t expect anything right out of the gate.
Would be nice. Lannett could never pull it off.
Pure garbage. You have no idea who that is or what that means. “Key” could mean key to Elite. Elite will have the majority of their revenue cut off so anything could mean “key”.
Could also mean they have a partnership with Ace Hardware to distribute keys. Never know - Mikah is still being unwound.
No one has any idea what that means. That could mean 2 contracts with mom and pop pharmacy joints. Until Elite divulges more, why should be expected at the next CC, we’ll continue to be in the dark.
Who do you think IR reports do? IR takes direction from CEO and BOD.
It’s a terribly sad situation. Will be interesting to see what contracts Elite can get in place.
Lannett/Elite end partnership at end of March
Cautiously optimistic
He has said on other occasions that the long term goal is to sell the company. He has also said uplisting is a top priority, but that’s a different can of worms.
Every company starts somewhere. Adderall is Elite’s beginning (after many years with poor decisions) to keep the operating cash flow driving R&D. They are on track to outperform history in top line and profitability. Pissed investors are growing wary of the slower than hare progress, but progress is being made nonetheless. CEO has fuzzy history on the ability to execute. I think he has the partners in place to successfully transition away from Lannett. We’ll see whether a CFO can put up with things long enough to stick around for their annual review.
Stocks trading below book value should not be a surprise. Future risks and uncertainty can be absolutely detrimental to the share price, as ELTPs shareholders have witnessed firsthand for several years.
Closing out the closers?
I’m much more worried of SP falling back to pennies without proof of successful sales transition. Until then, OTC is safer place.
There’s such little volume on OTC where there won’t be any significant movement one way or the other. If we RS/uplift and sales don’t materialize the downside could be much more painful.
Why would Elite uplift when they haven’t proven their revenue stream? Most of their revenue needs to be rebuilt post-Lannett. Uplisting would be an extremely poor decision to make at this time.
Lol Now it must be official.
Can’t ignore compensation via Mikah. He owns 50% Adderall. How about those other side deals for Mikah?
No, the timing under a period where there is significant risk would be futile. After successful transition away from Lannett would be best. Otherwise stock craters and we are back on OTC with fraction of ownership we have today.
Lol I would have no desire to be a CFO at Elite. Finance takes a backseat role to Mikah.
OTC shareholders means absolutely squat. That will not drive up share price nor will it provide share price stability.
Market clearly is communicating the lack of faith in the future growth of the company. Company growth first has to start far exceeding the dilution from the CEO’s annual bonus. Don’t ignore dilution.
There is currently no confidence in this company. Now with 90% of revenue on the line, there is a reason this is a very risky play. Market sees more risk than reward.
Elite chose partners poorly. Lannett barely penetrated Adderall XR market. Markets are forward looking and there was very little forward PE applied because there is virtually no growth. Pipeline stalled and is now starting to move again. There is concern about what CEO can actually bring to the table after SequestOx failure. That has tarnished him, hands down. He needs to prove he is worthy of investment. He has helped the company achieve CFP, now let’s see some real growth. Low single digit growth y/y is nothing to celebrate.
Only if excess cash is used and doesn’t risk company’s future potential. Market is forward looking.
CFO rotation is a massive red flag for any potential interested party. I think the best route should be to use a contractor and convert them to FTE if they can prove the job. This way the waters can be tested on both ends with flexibility for Elite. It’s more expensive, but worth it. We can always bring in another contractor if the first doesn’t hold water.
CFOs and other from CSuite need to be cherry-picked from other organizations. The funnel of talent is smaller at this level, which is why a specialized recruiter is needed.