Elite Pharmaceuticals, Inc. (OTCBB:ELTP)’s Recovery Didn’t Last

Elite Pharmaceuticals, Inc. (OTCBB:ELTP) managed to make a nice bounce in the Tuesday and Wednesday trading sessions, but turned bright red once more yesterday.

Judging by their reaction, ELTP enthusiasts were really happy with the ticker’s mid-week results. Indeed, a 13% and 20% rise in market value on two consecutive days is nothing to sneer at. Unfortunately the subsequent 10.74% fall has already wiped out almost half of that gain.

As far as one can tell, ELTP‘s fall was not really the company’s fault, but as is often the case – it can be attributed to the innate volatility of the OTC Markets. Why?

As we’ve said before, ELTP seems to be a solid enough company, for a pharmaceutical OTC Markets penny stock. It is certainly more financially sound than most other development stage companies in the branch.

However, the ORC Markets being what it is, there are just too many investors that wish to make quick profit from trading the company’s stock for the ticker to follow the advancement pattern of the actual entity it is tied to, or even remain stable for long.

This is more or less why ELTP stock prices are jumping up and down the charts, even though the company is making slow and steady progress.