Replies to post #342698 on Elite Pharmaceuticals Inc (ELTP)

[dr_lowenstein]

no worries, I doubt anyone will be calling LOL

[Je3232]

Thanks and I agree with your analysis. I’m thinking of selling all of my stock tomorrow. CEO a has been a major disappointment.

[The ELTP King]

It is now after Q2 as stated in your post highlighted in bold red below.

We NEED an updated DCF analysis WITH an updated buyout price.

Please "close the circle" as stated in your post!

Thanks!

I am a person who closes the circle. So, let me do that before I drop off the board. While I did say that I would do a DCF when August rolled around, it was not a promise...I do not type promises. However, in the nearly seven months since I wrote that post, what has happened? Remember what I have written on a number of occasions? CONTEXT MATTERS! And, the context has changed enough that I am not comfortable with doing that calculation right now. Perhaps, after the Q2 or Q3. It just depends on the context at that time. Now, as disappointing at that might seem, I have two things to offer...1) The calculations that the smart people inside a business development office, in the finance department, of some big pharma firm would arrive at are likely to offer a definitive number that would likely agree with me...that Elite is worth a multiple of the current p/s. 2) If you or anyone else wants to play with a multiple regression model and search for THE DEPENDENT VARIABLE, have at it...here it is...and do not ask me what numbers to use as your INDEPENDENT VARIABLES, I won't be answering the phone. This circle is closed.

Here is the model...

moneychimp.com/articles/valuation/dcf.htm