Replies to post #389287 on Elite Pharmaceuticals Inc (ELTP)

[mrwrn2010]

I wonder if we are in *the* OTC stock that brings in more revenues (and maybe profits) than any other?

[jour_trader]

Basic math here has one huge flaw. PE is price to EARNINGS, not revenue. This would assume that Elite incurs no expense whatsoever. Taking an earnings ratio even at a very healthy 30% gives you a drastically lower figure. Last time I checked Elite didn’t get API for free, have a volunteer sales and admin force or get free rent and utilities. Don’t skip over the overhead, variable costs, ongoing R&D & other fixed costs needed to support growth, which will happen.

[jour_trader]

Earnings include R&D. You are just making crap up again dude. You can’t ignore a significant company expense. As of today they are profitable, but barely. They will continue to invest in R&D. Don’t be ignorant to facts. That only gets you gov’t jobs. Oh wait, you worked for the gov’t. Lol