Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Struggles to Keep Positions

Elite Pharmaceuticals, Inc. (OTCBB:ELTP) is showing fatigue, sliding down after a series of climbs. ELTP lost more than 13% to stand down at 23 cents, on selling volumes of $4.73 million, as the end of the trading week comes with the question whether ELTP can sustain the higher levels, or if investors will move away without a constant inflow of positive news.

ELTP is an old acquaintance, but still struggling to achieve a more respectable price position. And now that the good news are consumed, investors’ forums are quick to share extremely negative opinions, that the current run is mostly over. Also, there is the awareness that while ELTP is not often pumped, some of the achievements and the potential are overhyped through PR and constant messages.

But that is not all: right at the peak of the trend, ELTP was also mentioned in a promotional email, sent away by Stockpalooza, com and financed by Bonjour Capital, LLC. The compensation is $100,000, and we have to wait and see how long the campaign would continue. The email is dated January 15th, and at this price, there may be another. It’s a wait and see if another email can repair the small correction and continue the climb for ELTP.

Now, the company is nearing the time for a new financial report, which usually boosts interest.

For pharmaceutical companies, news sometimes cause significant spikes, but often tickers live in a limbo without significant movements. Sometimes, big promises are the cause of great depressions afterward.

Consider Advanced Cell Technology, Inc. (OTCMKTS:ACTC), of Dr. Robert Lanza fame. The ticker went up among many when OTC markets were flooded with stem cell companies. Later, after the hype died down, ACTC went on to drift between 6 and 7 cents, hardly making a noticeable trend.

As for anti-opioid drugs, the FDA turns out to be less lenient than companies want to. In the case of Titan Pharmaceuticals, Inc. (OTCBB:TTNP) the agency required further extensive testing, delaying the release of an anti-opioid treatment that was promising for the company’s bottom line. Now, for a while TTNP has been pushed to an even tighter range, between 60 and 65 cents.

We will be tracking ELTP, especially if the pharmaceutical sector continues its revival into the coming weeks. The withdrawal of the medical marijuana hype uncovered older tickers that may also offer a more active climb, at least in the short term. Still, keep in mind that no promise or even ready achievement on the drug market can guarantee a pharmaceutical company’s stock price, so keep your investments to a size that is reasonable for you.