Yesterday, Elite Pharmaceuticals, Inc. (OTC:ELTP) recorded what would become its best market performance since May 20, 2011. By the end of the session, ELTP had gained 14.23%, closing at $0.0835 per share. While this price is nowhere near the six-month high of $0.217 achieved on Apr. 21, ELTP managed to score its highest percentage gain for the same period.
With more than 4.8 million shares changing hands, which is head and shoulders above the 30-day average volume of 1.44 million, ELTP scored a new seven-week maximum.
The reason for this unusual activity surrounding ELTP stock appears to be a fairly vague one. Neither managers, nor third parties and promoters have done anything special recently. ELTP’s latest press release dates from Aug. 15 and deals exclusively with the company’s most recent 10-Q report covering the period ended Jun. 30, 2011. As far as promoters are concerned, ELTP stock has not been subject to pumping since early-April.
The latest 10-Q report mentioned above informed investors about a 19% increase in revenues. A more thorough look at the report itself shows:
- cash reserves of $1.76 million;
- working capital deficit of $1.95 million;
- pre-tax net loss in excess of $30.7 million, mainly incurred due to a change in fair value of both warrant and preferred share derivatives.
Apart from the revenue improvement, ELTP’s financial situation still does not look as stable as the company’s supporters would like. Nevertheless, ELTP claims to be constantly working on new products while discontinuing some of its older ones. As long as the company keeps on its R&D activity alive, it will stand a chance of coming up with a flagship product in due course.
