Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Again Gives Hopes of Comeback
Elite Pharmaceuticals, Inc. (OTCBB:ELTP) had a curious manner of returning to center-stage. The ticker made strong gains only to slide back, and attack higher prices. And Thursday was one of those days, followed by an optimistic Friday opening. Last time, ELTP made a daily gain of 19% to break the 10-cent level, on buying volumes of $820,000. 
The press release backlog for ELTP shows that the company has been performing mostly household tasks, there is little talk of upcoming drugs, and simply sharing of obligatory filings. The financial results were quite encouraging:
- $369 thousand cash
- $2.5 million total current assets
- $5.3 million total current liabilities
- $3.4 million revenues
- $1.4 million net income
But despite this, ELTP managed to command only a few cents’ worth of a stock price. And the net gain of the dramatic summer is just a few cents. And ELTP has not been promoted since April this year.
ELTP is a success story compared to other tickers in the sector, with several drugs bringing in revenues. The only problem the company faces is a stock placement worth $10 million with which to improve its balance, but the placement would be blocked if the price is below 7 cents.
The inherent solidity of a drug company’s business has little to do with its stock success. After much talk of potential, and some real sales, Titan Pharmaceuticals, Inc. (OTCBB:TTNP) is still struggling to recover, after the FDA had some negative comments and slowed down one of the anti-addiction therapies.
At 10 cents and above, we have a star newcomer, United American Healthcare, Corp. (OTCMKTS:UAHC), shooting up five times from 3 to 15 cents on unprecedented buying. But the reason is a cheap, though widespread emailed promotion, touting the company’s qualities. At 15 cents, UAHC is still cheap enough for speculation, but also far enough from its habitual price to cause selling.
If you are attracted to the biotech sector, it is best to discern the preferable company. Also, think well of your preferred time horizon, since pharma stocks are sometimes slow, but surprise with a good day on positive news. Still, sometimes the surprise is in reverse, and the investment is wiped out, so avoid putting all your eggs in one basket.
