Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

but we did get some great winners in buying from Mikah!

I see where the company has now paid Mikah in full for the trimipramine ANDA. Total with interest $1.635M. IMO, it is very unlikely Hakim paid one dime over $25,000 for that antique ANDA. It is rarely prescribed due to heavy anti-cholinergic side effects, and it rightfully resides on the Beer's List of drugs that ought not to be prescribed for patients older than 65. I'll let someone else do the math, but the payoff is at least a 50-bagger for him. So congrats to Hakim, who really has figured out how to make big money off penny stocks.

I'd be happy to be proven wrong about this, but that would require him to show receipts, so I'm not in the slightest bit worried that will happen. This kind of self-dealing is extremely unusual for the CEO of a publicly-traded company. When it does happen, it is usually done with the highest degree of transparency to avoid the APPEARANCE OF IMPROPRIETY. Obviously, this was TOP SECRET from start to finish. Remember, Elite shareholders were told Mikah had ceased operating, and when he purchased this leftover ANDA, he did it secretly. He then set up a secret manufacturing deal with his Epic partners and a secret distribution deal with Dr. Reddy. It didn't take him long to realize all he had was 5# of shit in a 2# bag, so he then just recycled another old idea and laundered yet another worthless junk ANDA through Elite, just like the original 13. That's how you turn a crap $25,000 investment into a $1.635M windfall. The easiest part is convincing the sucker shareholders that you're doing them a favor.

The other aspect of this is that they chose to funnel this much cash to the CEO at this time. It again raises the question of who financed the Adderall acquisitions for Mikah? Who does he owe money to? It also suggests that the profit splits from Adderall are not enough to pay the mortgage.