Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

Starts with “M” and ends with “anagement”.

Myriad of reasons why stock hasn’t moved. For starters, any positive news is offset by risks, especially when the magnitude is unknown. What Elite has been plagued with for years is uncertainty. This is far worse than when bad news is communicated with to bad shareholders. This holds for any publicly traded company. Shareholders care about future earnings and profitability. When almost all of Elite’s eggs are in one basket and CEO communicates to shareholders that that basket may no longer exist, there will of course be pressure on the stock price. We know CEO is working on it, but we don’t know with whom, when, financial impact, ramp up and launch timing, etc. There is a significant amount of risk that shareholders are in the dark on. This is one of the main reasons why the stock doesn’t move - uncertainty.