Replies to post #404796 on Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

I could see some hesitation from a buyer from acquiring, but everything can be negotiated. I personally wouldn’t want Mikah involved from that angle as I’d want Nasrat to be 100% focused from Elite’s standpoint, but that’s out of our control.

[WeeZuhl]

There is zero reason why Mikah would stop any buyout.

Mikah may not stop an eventual buyout, but it will definitely slow it down and diminish the payout. Top tier companies will not want anything to do with negotiating with Hakim for both Elite and Mikah, and those that do will expect a deep discount for public Elite in exchange for their private generosity for Mikah. When the buyout finally occurs, every Elite shareholder will pay the Mikah Tax. A true long investor shouldn't care about the day to day share price. A true long should only worry about their total proceeds at buyout, including tax liabilities. A true long should be working diligently to unwind the intermingling of Mikah and Elite -- it is nothing more than common sense tax avoidance strategy.


Mikah Tax -- the cost we will all pay at buyout due to the ongoing intermingling of Mikah and Elite.

1. Cost of Second Tier Suitors -- top companies will stay away
2. Cost of Secret Side Deal with Hakim -- shareholders will never know how much money he demands for himself on the side
3. Cost of Mikah litigation -- multiple class action suits are guaranteed


Repeal the Mikah Tax!! Let's get rid of Mikah now and forever.

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