Elite Pharmaceuticals Inc (ELTP)

[Lazarus Elite]

Agree to an extent. Oxy win would make $1.30 to $1.50 a very reasonable number for a buyout, BUT, companies aren't sold at their current value, they are sold at their future value. I doubt very many people on this board have bought and sold companies, but, go ahead and try and make offers for 1x on any private company. It's nearly impossible. In ELTP's case, yes, they would already be buying multiples of the revenue stream, but Nasrat would never sell without accounting for the multiple applied to the other drugs in the pipeline.

Those additional revenues are about $500 million a year. 10p/e on those revenues puts this at a minimum of $3.50 per share, plus book value, plus "potential tech" value of unfinished SequestOx etc. should very easily bring in the other $1.50 in value.

It's very, very, hard for me to see how this ends up selling for less than $5 a share. I trust nothing until it is in hand, so I do often use $1.30 to $1.50 as a minimum number for planning (moving to another state), but I also know that $5 is not an unreasonable number that we will see at buyout.