Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

To use a medical term, this is in contraindication of business facts...and fails to grasp how things are done in business, the process for communication, or how a CEO (in this case Nasrat) would want to be perceived. We are talking about one of the biggest pharma companies (PFE) being approached by a very small company (ELTP). In fact, the egos of CEOs (of big or small companies) cannot tolerate personal rejection. That is why this particular matter was done through an emissary.

In whatever the manner the process may have been done is not the question. The salient question is - What was the basis for the approach? A small company emissary cold-calling a big company does not get beyond the gate keeper who protects the decision-makers. Due to this, we can surmise it was not a cold-call without predicate and, as it was out of the blue for investors, Nasrat had no reason to mention it. This means there must have been an initial interaction that induced the outreach for which there are, were, or will be some additional discussion.

Still, we may hear nothing more at the next CC. Not because no one would have asked (I intend on doing so), but because nothing came of it. In that case, I can only say to Nasrat - that was an unforced tactical blunder. But he should know that, which means this is an interesting point of contemplation for investors. However, moderation is warranted. These are not negotiations. Based on what we heard on the CC, they can be classified as inquiries. Always a good start.