Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

There are a couple of things that are incorrect...

I suggest checking the conference call transcripts to see that Nasrat has NOT constantly complained about manipulation of the p/s. Of late, I have been the person to make it clear that a profitable company should not see its p/s sitting in a trough - ergo, it is being manipulated and I provided the link in support. If missed, here it is...https://www.griproom.com/fun/10-signs-your-stock-is-being-manipulated

Elite has had its best financial performance ever, but that does not mean it qualifies for a Nasdaq listing. In fact, Elite has only met the earnings requirement for the last two years. To be approved for uplisting requires 3 years of consecutive earnings equal to or exceeding $11 Million BEFORE submitting an application and that means Elite needs another FY of revenues exceeding the baseline. That should end the discussion of uplisting now, but since I am here, let me clarify further.

A R/S at this time makes no sense. In truth, whether the p/s responds to the future drug development and earnings increases does not affect the value of the company that would be the basis for M&A. I realize there is a general belief that the market cap drives the true value of a company, but that is not the fact. Here is a link to help...https://www.investopedia.com/ask/answers/122314/what-difference-between-market-capitalization-and-market-value.asp

And here is a quote to provide context...

While market cap is often referred to as the value of a company, or what a company is worth, a company's true market value is infinitely more complex. Market value is determined by the valuations or multiples accorded by investors to companies, such as price-to-sales, price-to-earnings, enterprise value-to-EBITDA, and so on. These different metrics take into account several factors in addition to stockholder equity, such as outstanding bonds, long-term growth potential, corporate debt, taxes, and interest payments. The higher the valuations, the greater the market value.

As to downside, based on the safe harbor discussion on the last CC about new product development, Elite will be increasing its value over the next two years, which means the fundamentals will be even better and the company would be valued more. A strategic move in the future might include uplisting but it will not be done alone as a free-standing company. I have always believed and continue to believe that Elite will be part of a merger or acquisition that will enable it to uplist, even if in another name.

Finally, the answer: scrutiny, once again, attempts to infer misdeeds without evidence and misses the business reality exponentially.