Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

takes time for revenues to flow in. Expect a modest increase over last Q.

Wise counsel. We have seen this picture before, where Elite investors set the company up for criticism when seeking to prognosticate the next Q revenues, and the highest revenue guess becomes the de facto expectation, with anything less judged a failure; as it was in November 2020 when, in the face of record YOY quarterly revenues, the p/s was pressured lower from what was then 8 cents p/s. OBTW: that is a p/s we have not seen since.

As to what investors should expect, here is what Nasrat said on the last CC:

It is my expectation that the next quarter will be within the ballpark of this quarter revenue wise. We are on target to surpass last year's performance.

And, since I am here and talking about reining in expectations...

On the last CC Nasrat was clear, he was in contact with PFE and, while the context of his discussion gives rise to the hope of some relationship between Elite and Pfizer, to suggest the talks are a portent of an imminent deal between the pharma giant and little Elite is a mistake. Any discussions of potential alliances take time and most end up being nothing more than talk. Investors need to stop trying to fill in the gaps and let Nasrat speak to the issues, as he did.

And, as to the share price, we have recently seen it drop to 2.3 cents, then close Friday at 4.2 cents...all in the absence of news! Still, even with news of the partnership with Dexcel that has global growth opportunities, the p/s remains suppressed. So much for good news and a rational market.

Finally, I suggest caution when commenting the share price will "run up" as it did in 2014. Remember, that run was without evidence or news. Rather than some ungrounded run, I would rather see a fact based upward movement in the p/s that begins with the next quarterly report. The big question for Nasrat to answer on the next CC is - "Do you believe Elite is still on track to FILE four new ANDAs this calendar year?"