Elite Pharmaceuticals Inc (ELTP)

[kayak_wench]

I noticed today before your post that its market cap was about what its yearly revenue. But revenue is NOT profit. Someone would not break even. They would pay out $30 some odd million but only profit $4 to $6 million for the first year, meaning it would take them about 6 to 8 years to break even. Assets that can't be liquidated without disrupting future revenue are not really liquid so I don't believe you can't mix them into the equation as you did.

What is really hurting Elite was the drop from $7 million in revenue down to 4 in the spring. It sent the message that Elite's revenue would not grow but drop. So without more products it is viewed as a sinking ship. The rebound in revenue is good, but we need more approved products. I'm disappointed that the CC made it seem we have to wait for sometime in the first half of next year for any such good news on new products. I'm also disappointed they have maintained their R&D expenditures at ~$1 million a quarter. They have the cash if they want the brass ring why not put more resources to it. I hope they aren't saving cash to buy out Nasrat's Adderall ownership. That isn't worth much in terms of affecting share price because we know the market for Adderall is overcrowded and decreasing. To quote Huey Lewis, we want a 'new' drug.