Elite Pharmaceuticals Inc (ELTP)

[elichen]

HERE'S WHY:

It is common to be in silent periods where a company like ELTP is not releasing information. Investors, during those periods, can review past information, can bone up in the related field, but cannot *do* anything to extract new information. During these times, speculation is unhealthy; repeated speculation is worse.

In that vein it may be useful for everyone here to read the words of the Benitec CEO regarding bloggers and posters. (Though Benitec adheres to Australian Security Exchange guidelines, the guidelines are similar in the US.) His full letter is posted at Gumshoe.

Kind regards,
Minding

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"Benitec and other public companies [like ELTP] listed on [an exchange] are not able to advantage some shareholders over others by giving selected communications. All communications of new information are required to be done through [exchange] releases, a highly regulated medium. Whenever Benitec gives a presentation for a roadshow or at a conference, it is required to post these presentations on the [exchange]. This means that communications are necessarily restricted to material events, and the lack of communication, for which I have been criticized, means that there is nothing, either positive or negative, to report that would affect the share price.

It is very important to understand that providing speculative or premature preliminary information can be potentially very damaging, as conclusions can be drawn that are proven subsequently with more data to be completely unfounded. At Benitec we are very cognizant of the need to provide the market with reliable, current information that allows it to be fully informed. We will not provide speculative or premature preliminary information, either positive or negative, but will at all times comply with the continuous disclosure obligations which apply to us as an [exchange] listed company. If there is a hiatus in communication, then that is for a good reason.

*** Unfortunately, in the absence of communication from the Company, many bloggers and posters fill the gap with speculation. ***

The FDA have recognised this problem and have recently issued draft guidance as to how companies should respond to misinformation on social media (Internet/Social Media Platforms: Correcting Independent Third-Party Misinformation About Prescription Drugs and Medical Devices:http://www.fda.gov/downloads/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/UCM401079.pdf)

NOTE: all of the above was posted by "Minding" the other day. That person--not me--gets the credit for this good info. I am merely re-posting it.