Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

I am a person who closes the circle. So, let me do that before I drop off the board. While I did say that I would do a DCF when August rolled around, it was not a promise...I do not type promises. However, in the nearly seven months since I wrote that post, what has happened? Remember what I have written on a number of occasions? CONTEXT MATTERS! And, the context has changed enough that I am not comfortable with doing that calculation right now. Perhaps, after the Q2 or Q3. It just depends on the context at that time. Now, as disappointing at that might seem, I have two things to offer...1) The calculations that the smart people inside a business development office, in the finance department, of some big pharma firm would arrive at are likely to offer a definitive number that would likely agree with me...that Elite is worth a multiple of the current p/s. 2) If you or anyone else wants to play with a multiple regression model and search for THE DEPENDENT VARIABLE, have at it...here it is...and do not ask me what numbers to use as your INDEPENDENT VARIABLES, I won't be answering the phone. This circle is closed.

Here is the model...

http://moneychimp.com/articles/valuation/dcf.htm