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Are the keys on your keyboard stuck or is that just spasms you are having?
The close on Feb 2nd was .04
They pulled it because it never went through FDA approval process and that they had not been tested for efficacy or safety. Simple as that. Supposedly in some tests many of the time-release drugs that were listed released 85% of the medicine in first 30 minutes.
What puzzles me is that Hi Tech said in their press release:
"In 2010 Hi-Tech’s ECR Pharmaceutical subsidiary initiated a formal approval process with the FDA regarding Lodrane® 24 and Lodrane® 24D. The Company will continue to actively pursue approval for both products."
Why did they feel compelled to do that? Did they see this coming?
Hopefully they can prove the safety and efficacy of Lodrane and get it back on the market. Maybe they got lumped together with a bunch of "quack" manufacturers.
The main ingredient is Brompheniramin. Its an antihistime found in hundreds of prescription and OTC drugs.
Just grabbed shares at .045
Up to a not so whopping 70,000 shares now.
Buy into fear...
They didn't "lose" $3,000,000 either. If they got $3,000,000 in 9 months from this imagine when everyone runs to stock up on the product what their sales will be. Next 6 months could bring in $5,000,000 easy and by that time ECR/Hi-Tech might have the FDA's OK or they switch to the instant release. Not to mention the pipeline and partnership.
You Buy Into Fear, You Sell Into Greed.
Look at this as a gift from the heavens...you have a chance to accumulate more shares in a company with a real business plan. No "bubble" here. The press releases and the bashers can scare the beejesus out of the investor that has his kids college fund invested in an OTC stock. So be it, they probably have no business investing in it anyway. Lodrane is quite safe and there are a number of brands that use the key ingredient that are NOT banned by the FDA. The ingredients in Lodrane are not what are being banned. It's the brand name that pre-dates 1962 approval that is not approved. It's all about the FDA covering its ass. Hi Tech obviously was not surprised by this announcement as they have proactively begun the formal approval process. In the meantime they can continue to sell Lodrane for 180 days which means that the sort term goal of Lodrane sales funding Elites pipeline & R&D remains intact. Lodrane is a bridge to the long term. Remain calm. Scared money never wins.
As a side note, if there are any serious long term investors interested in visiting Elite in NJ let me know. I'd like to try to arrange a tour or lunch or whatever with Jerry or Chris near their Northvale, NJ HQ.
I have a tiny 50,000 share stake. If it tanks this won't change my life one iota. I have been following the stock for a long time and live less than 30 minutes away from their HQ. It's my first foray into penny stocks. My philosophy is to invest locally in "real" companies and to be patient with my "mad money".
If anyone can convince me that the sky is falling without typing in ALL CAPS...please give it your best shot.
Ummm it has EVERYTHING to do with Elite....
ECR is subsidiary of Hi-Tech
Elite makes and gets royalties for manufacture of Lodrane
Little more selling from Trellus
http://www.istockanalyst.com/article/viewsecfiling/articleid/4920812
I have just 50,000 shares. This goes to $1.00 I buy a new car or pay down my mortgage a bit. I lose it all I lose only some of it as I'll get a write off. I've been following this stock for a long time. I once owned it when it was over $2/share based on purely speculative value. Now they actually make money and have a real business plan to fund their R&D. Want to know where all the profit went last quarter? Right into more R&D and expansion of facilities. Look at the numbers. Think about that.
Gee, I would have done that for them!
How'd you find out? They sure need it!
All:
I created pdf of slides you can download here:
http://www.cliffordpaper.com/Rob/print_slides.pdf
Trellus/Elite
I think it's critical to understand the role Trellus plays in this. Here are some facts/DD. I'd really really appreciate others input here. The story is far from complete and I am very much an newbie to all of this.
9/15/2008 - Various Trellus companies, owned by Adam Usdan, acquires controlling interest (approx 50% of the voting shares)
in Elite by purchasing preferred shares for $400,000 (needs verification...not sure I read that right) that were convertible
to common stock. Stock closed at .09/share on 9/15/2008.
1/23/2009 - Trellus converts preferred stock to common stock.on January 23, 2009, after giving effect to the foregoing
conversions, there were 56,815,891 shares of Common Stock (exclusive of 100,000 shares held in treasury) issued and
outstanding, and the Trellus Entities owned, directly or indirectly, an aggregate of 23,969,652 shares of Common Stock,
including an aggregate of 1,969,652 shares of Common Stock held, directly or indirectly, prior to the conversions. Stock
closed at about .06/share on 1/23/2009. Trellus 400,000 inventment is now worth 1,440,000.
3/23/2009 - Elite enters into Strategic Alliance w/ Epic Pharma. As part of the agreement, Elite agrees to convert preferred
stock to common stock in an effort to loosen Trellus's hold on Elite. .......has agreed to use its best efforts to obtain the
agreement of the holders of the outstanding shares of Series B Preferred Stock, Series C Preferred Stock, and Series D
Preferred Stock (the “ Outstanding Preferred Stock ”) to convert all of their shares of Outstanding Preferred Stock into
Common Stock in accordance with the respective terms of the Outstanding Preferred Stock. The conversion of the outstanding
shares of Series B Preferred Stock and Series C Preferred Stock is a condition precedent to the Initial Closing. Assuming the
transactions contemplated by the Alliance Agreement, including, without limitation, the conversion of the outstanding shares
of Series B Preferred Stock and Series C Preferred Stock into Common Stock, the Trellus Entities will beneficially own less
than 50% of the Registrant’s voting securities. As a result of such conversions, the Registrant believes that it would be
unlikely that such Trellus Entities would be deemed to have the ability to influence the management and policies of the
Registrant......Trellus shares diluted big time from 50% to ?? (it's about 20% now)
4/3/2009 - Trellus begins selling shares in dribs and drabs and has done so up this day.
5/21/2009 - Elite Delists from AMEX
6/5/2009 - Elite closes Epic SA Deal
7/8/2009 - New CFO
9/21/2009 - New CEO and Chief Scientific Officer. The Chief Scientific Officer is also President and CEO of Epic.
What conclusions to draw from this? Did Adam Usdan like what he saw and attempted a takeover that Elite fought off and Epic
used their influence to replace management that allowed it to happen? Trellus owns about $1,100,000 in stock still so they
did OK but they continue to slowly sell off, taking profit bit by bit. This is a drag on the stock obviously. Why don't they
sell all of it? Maybe there just aren't enough buyers? Why doesn't Elite buy shares back? They probably don't have the capitol or perhaps Adam usdan is so pissed that he refuses to sell and is holding the stock hostage by dragging the price down. This also may explain the shorts. Trellus slow sell offs keep Elite in a trading range that keeps it from popping as long as the only investors are small timers like all of us. They "sell" it at 6 and wait for the drift down to "5" as Trellus sells and then they "buy" at the "5". Once Trellus is out of the way (everyone has their price right?) we'll be good to go as long as Elite keeps building the business.
Well, there's a pic of their building at 165 Ludlow Avenue on their home page:
http://www.elitepharma.com/corp_info.asp
And you can google map the building here:
http://maps.google.com/maps?q=165+Ludlow+Ave.,+Northvale,+NJ+07647&um=1&ie=UTF-8&hq=&hnear=165+Ludlow+Ave,+Northvale,+NJ+07647&gl=us&ei=O4VVTdjrHoOdlgfYmpnwBw&sa=X&oi=geocode_result&ct=title&resnum=1&ved=0CBMQ8gEwAA
They also leased additional warehouse space two doors down at 135 Ludlow Avenue. Info about the lease....
The Company entered into a lease for a portion of a one-story warehouse, located at 135 Ludlow Avenue, Northvale, New Jersey, consisting of approximately 15,000 square feet of floor space. The lease term begins on July 1, 2010 and is classified as an operating lease. The lease includes an initial term of 5 years and 6 months and we have the option to renew the lease for two additional terms, each of 5 years. The property related to this lease will be used for the storage of pharmaceutical finished goods, raw materials, equipment and documents as well as engaging in manufacturing, packaging and distribution activities.
This property requires significant leasehold improvements and qualification as a prerequisite to achieving suitability for such intended future use. It is expected that approximately 3,500 square feet of this property will be constructed and qualified as suitable for use for storage of pharmaceutical finished goods, raw materials, equipment and documents on or before the expiration of the lease for the current warehouse at 80 Oak Street.
Leasehold improvements and qualification as suitable for manufacturing, packaging and distribution operations are expected to be achieved within two years from the beginning of the lease term. These are estimates based on current project plans, which are subject to change. There can be no assurance that the construction and qualification will be accomplished during the estimated time frames, or that the property located at 135 Ludlow Avenue, Northvale, New Jersey will ever achieve qualification for intended future utilization.
Minimum 5 year payments* for the leasing of 15,000 square feet at 135 Ludlow are as follows:
Fiscal year ended March 31, 2011
$ 19,689
Fiscal year ended March 31, 2012
79,248
Fiscal year ended March 31, 2013
81,228
Fiscal year ended March 31, 2014
83,259
Fiscal year ended March 31, 2015
85,344
Total Minimum 5 year lease payments
$ 348,768
* Minimum lease payments are exclusive of additional expenses related to certain expenses incurred in the operation and maintenance of the premises, including, without limitation, real estate taxes and common area charges which may be due under the terms and conditions of the lease, but which are not quantifiable at the time of filing of this quarterly report on Form 10-Q.
Honestly I just Googled "Market Makers Signals" when I saw the "777" yesterday and came across that blurb. I haven't seen anything on the "777" yet but I did remember seeing these and when I saw that 100 today I went back to the article and posted it. Seems to fit right?
BTW I live near Northvale, NJ where Elite is and a friend of mine worked for them for some time so I've been casually researching for the last year or so and lurking the boards. I have a small position of 50,000 shares and am using this as my education in penny stocks.
I won't post unless I think I have something meaningful or helpful to say.
100 trade...
Penny traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are such a small amount of shares (worth no more than 5 or 10 dollars) that no trader would have paid a commission that costs more than the amount of shares bought. The "signals" are from one MM to another.
100 I need shares.
200 I need shares badly,but do not take the stock down.
300 Take the price down so I can load shares
400 Keep trading it sideways.
500 Gap the stock. This gap can be either up or down, depending on the direction of the 500 signal.
Isn't this just a repeat of this announcement? Most of us that follow Elite knew about this quite a while ago. December 13th to be exact.
Nice to see that Elite is finally promoting it though.
http://bio.org/news/pressreleases/newsitem.asp?id=2010_1213_01
Dude, it was a minor but positive announcement. No one claimed this was the second coming. Just one more lego.
.16 of a $40,000,000 market AND they only get a piece of that.
Lets say the get a third of that...
.16 * .33 * 40,000,000 IN SALES = 2,000,000. Now what's the profit margin? 50% ?? so in the end this might be $1,000,000 in their pocket sometime next year.
Sooo, no. It isn't going to take off. They are layering one nice little income stream at a time. They will have multiple, diversified streams from which they can fund their OWN R&D efforts for bigger drugs. This is a very long term play. Sure you can buy the dips and sell on the news. Eventually it gets enough traction to throw off the MM's and Shorts but today is probably not quite the day.
I'm a long time lurker. Hold just 50,000 shares and just waiting patiently.
The potential for positive cash flow is good. They will need it first and foremost to address their NJEDA Bond Defaults.....and they need to to that soon.
From last 10Q:
In addition, the Company has received Notice of Default from the Trustee of the NJED Bonds as a result of the utilization of the debt service reserve being used to pay interest payments due on September 1, 2009, March 1, 2010 and September 1, 2010 totaling $121k, $113k and $113k, respectively, and principal payments due on September 1, 2009 totaling $210k. The debt service reserve was utilized to make such payments as a result of the Company’s not having sufficient funds available to make such payments when due.
The Company did not have sufficient funds available to make the principal payments due on September 1, 2010, totaling $200k and requested that the Trustee withdraw such funds from the debt service reserve. The Company’s request was denied and accordingly the principal payment due on September 1, 2010, totaling $200k was not made.
The Company has requested a postponement of principal payments due on September 1, 2010, 2011 and 2012, with an aggregate of all such postponed principal payments being added to the principal payments due on September 1, 2013. Resolution of the Company’s default on the NJEDA Bonds and our request for postponement of principal payments will have a significant effect on our ability to operate in the future.
Please refer to Note 5 to our financial statements for a more detailed discussion of the NJEDA Bonds and Notice of Default. Please also note that the working capital deficit of $2.6 million as of September 30, 2010, includes the entire principal amount due in relation to the NJEDA Bonds. This amount, totaling $3.4 million was first classified as a current liability as of March 31, 2010, due to the Notice of Default received from the Trustee in relation to the NJEDA Bonds.
NOTE 5
- NJEDA BONDS
On August 31, 2005, the Company successfully completed a refinancing of a prior 1999 bond issue through the issuance of new tax-exempt bonds (the “Bonds”). The refinancing involved borrowing $4,155,000, evidenced by a 6.5% Series A Note in the principal amount of $3,660,000 maturing on September 1, 2030 and a 9% Series B Note in the principal amount of $495,000 maturing on September 1, 2012. The net proceeds, after payment of issuance costs, were used (i) to redeem the outstanding tax-exempt Bonds originally issued by the Authority on September 2, 1999, (ii) refinance other equipment financing and (iii) for the purchase of certain equipment to be used in the manufacture of pharmaceutical products.
Interest is payable semiannually on March 1 and September 1 of each year. The Bonds are collateralized by a first lien on the Company’s facility and equipment acquired with the proceeds of the original and refinanced Bonds. The related Indenture requires the maintenance of a $415,500 Debt Service Reserve Fund consisting of $366,000 from the Series A Notes proceeds and $49,500 from the Series B Notes proceeds. The Debt Service Reserve is maintained in restricted cash accounts that are classified in Other Assets. $1,274,311 of the proceeds had been deposited in a short-term restricted cash account to fund the purchase of manufacturing equipment and development of the Company’s facility. As of September 30, 2010, all of these proceeds were utilized to upgrade the Company’s manufacturing facilities and for the purchase of manufacturing and laboratory equipment.
Bond issue costs of $354,000 were paid from the bond proceeds and are being amortized over the life of the bonds. Amortization of bond issuance costs amounted to $3,533 and $7,065 for the three and six months ended September 30, 2010, respectively. Amortization of bond issuance costs amounted to $3,533 and $7,065 for the three and six months ended September 30, 2009, respectively.
The NJED Bonds require the Company to make an annual principal payment on September 1 st of varying amounts as specified in the loan documents and semi-annual interest payments on March 1 st and September 1 st , equal to interest due on the outstanding principal at the applicable rate for the semi-annual period just ended.
The interest payments due on September 1, 2009, March 31, 2010 and September 1, 2010, totaling $120,775, $113,075 and $113,075, respectively were paid from the debt service reserve held in the restricted cash account, due to the Company not having sufficient funds to make such payments when due.
The principal payment due on September 1, 2009, totaling $210,000 was paid from the debt service reserve held in the restricted cash account, due to the Company not having sufficient funds to make the payment when due. The Company did not have sufficient funds available to make the principal payments due on September 1, 2010 totaling $200,000, and requested the Trustee to withdraw the funds from debt service reserve held in the restricted cash account and to utilize such funds to make the principal payment due. The Company’s request was denied by the Trustee. Accordingly, the principal payment due on September 1, 2010, totaling $200,000 was not made.
Pursuant to the terms of the NJED Bonds, the Company is required to replenish any amounts withdrawn from the debt service reserve and used to make principal or interest payments in six monthly installments, each being equal to one-sixth of the amount withdrawn and with the first installment due on the 15 th of the month in which the withdrawal from debt service reserve occurred and the remaining five monthly payments being due on the 15 th of the five immediately subsequent months. The Company has, to date, made all payments required in relation to the withdrawals made from the debt service reserve on September 1, 2009, March 1, 2010 and September 1, 2010. The Company is required to make four additional monthly payments of $19,330 during the period November 15, 2010 through February 15, 2011, in order to fully replenish the September 1, 2010 withdrawal from the debt service reserve.
F - 8
The Company does not expect to have sufficient available funds to make the interest payment of $113,075 due on March 1, 2011 as well as the principal payment of $200,000 which was due, but not paid, on September 1, 2010
The Company has received Notice of Default from the Trustee of the NJED Bonds in relation to the withdrawals from the debt service reserve, and has requested a postponement of principal payments due on September 1 st of 2010, 2011 and 2012, with an aggregate of all such postponed principal payments being added to the principal payments due on September 1, 2013. Resolution of the Company’s default under the NJED Bonds and our request for postponement of principal payments will have a significant effect on our ability to operate in the future.
Due to issuance of a Notice of Default being received from the Trustee of the NJED Bonds, and until the event of default is waived or rescinded, the Company has classified the entire principal due, an amount aggregating $3.385 million, as a current liability.