My argument is that the uncertainty created by the poison pill outweighs the value of the protection it creates in the "essentially nonexistent" possibility of a hostile takeover.
1. The threshold to trigger the pill is a very low 15%. As such no entity will commit any meaningful amount to this stock. At today's price, 15% is less than $40MM.
2. I submit that an outside entity seeking to acquire 15%+ of the outstanding stock is a GOOD thing for shareholders as the demand created by such acquisition would invariably raise the share price. At today's anemic volume the share price might actually skyrocket under such accumulation, assuming existing shareholders are in for the long haul and not seeking to quickly cash out.
3. Knowing that no entity can acquire the 15%, ELTP stock is ripe to manipulation as no one can acquire sufficient shares to exercise healthy and meaningful ownership rights.
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