Replies to post #358829 on Elite Pharmaceuticals Inc (ELTP)

[namtae]

Apparently confusing shareholders is the objective here. Let me clarify things for those that wish to understand the truth & reality about stock options

Key to any options are not only the vesting period but the strike price. His are 5.6 cents. The thing about options is they have no value if the share price does not go up. For the sake of argument, let's say the p/s never get above 5.6 cents over the next three years...In that case he has nothing. Stock options are a wonderful thing but only if the share price moves beyond the strike price...BEFORE THE EXPIRATION DATE!

Anyone even vaguely familiar with stock options (my experience is extensive) knows that options have a TIME VALUE. For ex, an option set to expire in 2 years has a much greater TIME VALUE vs the same option set to expire in 2 weeks. This holds true whether the option is traded publicly or not.

Is it the contention that Elite issued worthless options to Bergman? If so, please give me some of that worthless stuff too

Nah, those options have value even though they are currently out of the money. Thats just the plain reality of it provided by someone thats owned significant dollar amounts of options or both private and public companies

There are some other interesting aspects but I try to add clarity not confusion and since most will never see a stock option, I will stop here.

Ha

[Je3232]

It’s great that he was given options and great that stock has to go up for him to be in the money. What’s amazing is how little the value of options are. Hoping the CFO said after seeing the books , these will be worth something soon.

[jgsnys]

"For the sake of argument, let's say the p/s never get above 5.6 cents over the next three years...In that case he has nothing."
- No argument- totally possible!

"There are some other interesting aspects but I try to add clarity not confusion and since most will never see a stock option, I will stop here." Ah!. . . "add clarity". . . drop-wise perhaps?

CLEARLY, any options on ELTP shares exist solely as a means to compensate Nasrat, management, and board cronies.

[DSherman]

Correct, very conservative for a new employee as well as the strike price which was probably the 5 day avg at the time. Bottom line is he has been given nada re Eltp at this time.
Eltp

[Je3232]

Nasrat in my opinion has played us as have some with the cheerleading