Elite Pharmaceuticals Inc (ELTP)

[HankVerde]

I hadn't thought about that. I guess it's possible, but why would they want to keep a stock from going up that they could make a profit on? If they have to convert their shares then likely the price is over $0.15, and probably well over $0.15, since the price has to be over $0.15 for so many days before they have to convert and it's unlikely to just stay at $0.15 for that long. Also, where would they get the immense amount of shares they'd need to sell to keep the price down. Plus, once they ran out of shares that could have been worth more, then they are back in the same boat.

Please don't misunderstand. I'm not arguing with you, just "thinking out loud" about a thought-inspiring question. It's possible you hit the nail on the head.

Personally, I think it's the hedge fund although it could be long-time holders who are frustrated (human psychology again) and now that the price is up a bit, they are selling at exactly the wrong time (of course, if the price tanks then they are selling at the right time ).

I don't know that much about the internal workings of hedge funds, but I've never heard of one trading a penny stock. I don't know what their rational was for trying to take control of ELTP (well, I do, profit, but I don't know why they thought they could profit from controlling ELTP), but having failed I think they are looking to dump their shares at almost any cost. Penny stocks are just not something hedge funds do. But rather than give the shares away, I think they are selling into any kind of strength. I know they sold a lot of shares really cheap, but I think they realized that they could do better by being patient. Of course, I could be totally wrong, but that is what I think.

I also think that once they have cleared out their position, we'll see a rise in price. I believe the fundamentals are there and eventually will make ELTP a big winner. And I've put my money where my beliefs are, as have most of you contributors.

Of course, these things always take (a lot) longer to materialize than we thing they will. I previously mentioned a biotech we've held for 10 years and are out well into the 6-figures. The only reason we are still in it is that two mega-millionaires I know have personally invested heavily in this company and continue to believe it will eventually be a winner. I just hope I am still alive to see it as these things (see the first sentence of this paragraph).