Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

There are questions about Elite's valuation that need to be clarified if we are to arrive at an informed discussion about what the price might be for their acquisition.

First, remember that the must discussed valuation of the firm was completed about November 2013 and conveyed to the shareholders in about February. (if memory serves) So, the basis for that valuation (and of course it happened, so lets forego that unpleasant discussion), were those events and the state of the business prior to November 2013. Still, with that, the company was valued at a low of 40 cents and a higher range of 2.10-2.75. Now, a big question. What was the p/s at the time the valuation was announced? About 12 cents!!!

What does this mean? It is obvious. A valuation is predicated upon conditions at the time of the valuation divorced from the actual p/s. So please do not continue to confuse the p/s as being reflective of the value of a firm. Also, please keep this in mind because I am doing to use it as a predicate for a discussion of what I believe to be the buyout price for Elite in the future.