Elite Pharmaceuticals Inc (ELTP)

[Aqua]

This is a response to those who perceive the distribution of ELTP shares by insiders as an indication of trouble ahead. Such an interpretation is premature given the following circumstances:

1) Threat of the "Fiscal Cliff" (RESOLVED) and "Debt Ceiling"
2) Capital gains tax increase from 15% to 20%.


Cheers!

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Dec. 12, 2012, 3:55 p.m. EST

Massive Insider Selling Already Happening Before Higher Capital Gains Taxes Kick In


By 24/7 Wall St.
Insider selling is starting to get massive before year-end when higher capital gains taxes will kick in. We continue to expect that corporate insiders, venture backers, private equity backers, and founders will sell stock at close to a record pace. After all, the 15% capital gains taxes for the bulk of these insiders is set rise with or without a fiscal cliff settlement. There is a common belief that taxes on asset sales will never be as low as they are right now. Yes, never!

24/7 Wall St. has tracked many of the large transactions which have been seen since Thanksgiving and since the election and some of the dollar sums are amazing. The risk of not selling to lock in gains now is also not just one of taxes: if the fiscal cliff is not resolved these insiders might have to wait through another recession for much higher prices.

These are just some of the insider sales we have seen of late in the $1 million and higher range in total per company since Thanksgiving and into December. Many of these are options exercised and are under planned executive share sales, so they are not solely intended to be signaling any reason for panic...

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