Dragni Dragnev

Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Is Still Red

by Dragni Dragnev July 11, 2014

Since we last checked on Elite Pharmaceuticals, Inc. (OTCBB:ELTP, ELTP message board), the company has continued its bumpy ride to the bottom of the charts. Despite looking promising during its July 3 and July 9 sessions, the ticker is still headed down, decisively. Yesterday's 3.14% descent is just the latest run in the red, and it looks like it won't be the last one the company will experience in the near future.

Evidently, ELTP investors were not too happy with the results that the company's last 10-K revealed. The report basically showed that ELTP has spent a whole year turning $6.6 million into $4.6 million worth of revenues, which yielded a Gross Profit of $1.3 million. Unimpressive numbers indeed, especially for a pharmaceutical company that “has seven commercial products currently being sold”.

Truth be told, ELTP has some serious achievements. Unlike other OTC Markets pharmaceutical companies, most of which are stuck in the development stage and/or drowning in toxic debt, ELTP is actually making some serious revenues. It managed to finish the year with nearly $7 million in cash – a feat way beyond the capabilities of most medical penny stocks. Not to mention that it boasts “twelve additional approved products pending manufacturing site transfer and two additional products under review pending approval by the FDA”.

However, for the present moment, this does not appear to be enough for investors. The way things are going, ELTP may need to do some serious convincing to restore investor trust in the company. Since the company's next financial report is not due for another month or so, ELTP will probably have to come up with some really good news if it wants to get back in their good graces before then.

Another company that is was struggling with the market yesterday, and lost 2.37% despite its best efforts, is Creative Edge Nutrition, Inc. (OTCMKTS:FITX).

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