Elite Pharmaceuticals Inc (ELTP)

[imanjen13]

The expectation of a $20 million quarter is troubling since it would represent a 33% increase from the last quarter which surprised most here. While Adderall is currently a very hot drug which has high demand, the amount of product a company can sell is limited by the API available and the DEA quota. My fear is that the company reports $15 million or so and the Street is disappointed as it would be considered flat from prior quarter rather than the comparison with the quarter a year ago.

The above average volume for the past month indicates that new eyes are on this company and that hopefully there is a major buyer(s) who is accumulating the stock from new homeowners.