Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

Simple answer. A company can be CFP, but investors are questioning the ability for the company to produce meaningful future value to shareholders. Also, the company also has a billion shares outstanding and has diluted heavily. There may also be concerns regarding the transition away from Lannett (e.g., need to raise cash to survive if transition doesn’t go as well as expected).

Building confidence is as simple as doing what management says they will do. If they do, stock rises as confidence is built in investment community. Don’t do it and blindside shareholders will decimate any stock, regardless if profitable.

How many times have Elite’s shareholders been surprised with news to the downside?