Post of the Longs: Dem Makes DD Easy

FOR BASHERS (in big font)

A lot of the links have sadly been killed... so I've removed bad ones and will continue to provide links to new improved research links in the future...
** ELTP already has FDA Approval on 3 products:
http://www.elitepharma.com/ (See Company Pipeline)

** ELTP signed an agreement with HITK which trades on the NASDAQ at over $23.00+ per share to develop a generic version of a prescription product for which the branded product had sales in 2010 of over $100 million.

** The signature of the HITK:NASDAQ CEO (David Seltzer) is on the ELTP 8-K below confirming their agreement:
http://www.otcmarkets.com/edgar/GetFilin...

** From the post below, ELTP had 1% Institutional ownership two years ago, but now ELTP has 36% Institutional Ownership:
http://investorshub.advfn.com/boards/rea...

** And now, ELTP reports basic net income of $0.06 per share and fully diluted net income of $0.02 per share for its “fiscal” third quarter ending Dec 31, 2010:
http://ih.advfn.com/p.php?pid=nmona&arti...

>> Basic Net Income = $0.06 per share
>> Fully Diluted Net Income = $0.02 per share

The link below confirms that ELTP trades on the OTCBB within the Sector titled Healthcare within the Industry titled Drug Manufacturers – Other:
http://biz.yahoo.com/p/511conameu.html

The link also confirms that the Industry titled Drug Manufacturers – Other has 37.70 as its Price to Earnings (P/E) Ratio. This is important because the P/E Ratio is the multiple that is used with the Earnings Per Share (EPS) to derive where a stock should fundamentally trade. As you can see from above, I could logically use 37.70 as the multiple or P/E Ratio, but I will instead use 12 which is very conservative indeed considering the growth rate for those stocks trading within the Industry ELTP trades. To better understand the logic and importance of the P/E Ratio, please read the link below:
http://investorshub.advfn.com/boards/rea...

Because of the due diligence that have been discussed thus far, I am confident or at least willing to take my chances that ELTP has turned the corner for the better for good by posting their minimum Fully Diluted Net Income = $0.02 per share. This is the ELTP Earnings Per Share (EPS) for its third fiscal year quarter that’s already calculated for us. I’m confident that ELTP will generate a minimum of .02 per share EPS for 4 consecutive quarters to then give it a .08 per share EPS for the year. This means that ELTP will have a fundamental annual share price value of…

.08 Annual EPS x 12 Conservative P/E Ratio = $0.96 per share

This means that ELTP:OTCBB ”should” fundamentally trade within the $0.96 per share price range based on its Fully Diluted EPS of $0.02 per share that was ”officially” released by the company.

For those not wanting to be conservative, we could still fairly apply the ”actual” P/E Ratio of 37.70 for the Industry in which ELTP trades to derived a fundamental share price below:

.08 Annual EPS x 37.70 Actual Industry P/E Ratio = $3.01 per share

This means that ELTP:OTCBB ”should” fundamentally trade between the $0.96 per share and $3.01 per share price range based on comparing and contrasting a conservative P/E Ratio of 12 with its ”actual” Industry P/E Ratio of 37.70 for which it trades. Again, this is all based on its Fully Diluted EPS of $0.02 per share that was ”officially” released by the company.
Courtesy of Hike within the post below, a powerful Power Point Slide Presentation was created that should greatly help investors to also see the potential here in ELTP:
http://www.cliffordpaper.com/Rob/print_s...
http://investorshub.advfn.com/boards/rea...