Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

As we know, I get one shot a day and have to cram a number of things together. Moreover, I do intend on taking a hiatus. However, there were some points my post raised that need to be addressed (I am not one to avoid criticism nor afraid to respond where and when appropriate.)

To begin with, taking my posts personally is a mistake; as is disputing facts when a closer reading would help to prevent misapprehending what I said. As the Godfather said… “It’s not personal, it’s just business.” So, let me address the few issues…beginning with this…

The valuation was based on Elite's ART technology, as Nasrat stated on the CC in 2013.

No valuation of any company is predicated on a single technology or product. It is the sum of the company, everything that can be monetized counts.

Then there is this...

No, the valuation was based on a fully-diluted basis at the time, NOT the current outstanding shares at the time.

My post used the fully diluted shares, not the authorized share count. As the following makes clear, that would be an error...

Fully diluted shares are the total number of common shares of a company that will be outstanding and available to trade on the open market after all possible sources of conversion, such as convertible bonds and employee stock options, are exercised. https://www.investopedia.com/terms/f/fullydilutedshares.asp

About this...

I was the one who pointed out that in this 10-K the poison pill info was also listed in the "Subsequent Events" portion of the 10-K in addition to where they normally list it. So what are you trying to say? The poison pill is no longer any good?

Retention is not a problem I have. What I was “trying” to say, I did say.

Then there is this…(and, I know the author, but I only have one post)...

Since nothing in the entire dissertation addresses anything I've said over the past 2 days, I'm not sure what this Q&A is meant to address (or when). It's not any of the points I've brought up.

Again, its not personal. But, having written a dissertation (376 pages worth), my little post is not even the rough equivalent of the proposal that had to be accepted before I could write the actual dissertation. Truly, my purpose was not criticism, nor meant to address any specific points. I try to illuminate a path to understanding Elite's future, not complain about its past. I learned that as an executive with global responsibilities in a very big global firm. In the medical world, when mistakes are discovered in a post-mortem, learnings are gained and help further the medical profession. So it is In business, though less messy. Business leaders (just like those in the military) do an after action assessment and adapt as is appropriate to pursue their success. To learn from mistakes as quickly as possible and not repeat them is what successful business leaders and companies do.

Relevantly, this begs the question - Has Elite not pivoted from its escalation of commitment on ADF opioids to a more bountiful revenue stream that a portends well for the future? Of course it has and, not only is that strategic success at its essence, it is evidenced in the revenue growth and near profitability. Which, after all, is why people like to invest in profitable businesses (though fewer than half of them are profitable).

Then there is this...

It is no longer possible to believe that if Nasrat does well then I will do well. The failure of this company is not entirely due to Nasrat's miserable leadership skills. It is also the result of his unethical extraction of personal wealth for himself and his pharma bros through constant self-dealing with Mikah. It is time to expect better from Elite management, and that includes all the company officers and board members. They all have an obligation to prevent malfeasance, and it is time for them to wake up.

First, failure means finality. As Elite approaches profitability, that does not seem to be a logical conclusion. However, the rest of the quote sounds fine to me. And, on that and to date, I am unaware of anyone – other than me – that discussed with Elite about having an outsider, a little ol’ retail shareholder, on the board. I even took a poll and was able to get more than 25 million in shares held by a number of people interested in pushing the matter. Unsurprisingly, when I discussed it with Elite, they were disinclined. But that was then. Perhaps, it is time to raise that issue again. However, I do not wish to do it. Been there, done that. Nor, do I have interest in being on their board; though I have been on the board of a business and a few non-profits. However, it would make sense for Elite to have me as a strategy consultant (asked and answered, sadly to the negative). But, they will let me know if they need my help. Sure!

And finally...

Now let's work and try to recover something instructive from this gross verbosity.

By gross, was that framed to mean 144 or something? Or should I take it as a pejorative comment?

OBTW: I see that a footnote reflects something I said before. Perfect irony.

Now that I feel better and everyone is caught up, let me go finish my book.