Replies to post #384652 on Elite Pharmaceuticals Inc (ELTP)

[The ELTP King]

You know absolutely nothing as evidenced by today's iHub postings.

Psst. I’ll let you in on a secret. Here is another reason why Elite’s stock is so low. Growth stocks are compared Y/Y and Q/Q. That is what investors look for - continuous sequential growth.

[Pharma Sleuth]

Jour_trader still has no idea what he is talking about. Q/Q can be easily skewed in a manufacturing business at this level. Especially in Pharma. If big orders dont get shipped/received depending on the criteria to recognize revenue, you may show a huge Q followed by a small Q. And vice-versa. Just because big shipments were released at the end of a quarter or the very beginning. So you like Y/Y which is more like an average. A rolling avg is even better

However , that's not the end of the story. You have to look at account receivables and inventory. That kind of tells you where things are headed. In this case 12m vs 17m Q/Q. So not only did revenue look great but if you use inventory and receivables to look at the future, you get an idea of where things are headed.

Also if inventory and AR was low you could think that maybe big shipments happened right at the end of the month depleting that number.

Now we could have had some big late shipments and who doesn't want more Adderall right now.

But even then the 50% jump in inventory/account receivables mitigates any concern and is extremely bullish on the future. As is the loan money...duh