It is almost trading 800% higher then the net tangible book value, which is $1.14
They only reported a $200k quarterly profit! Not that big of a deal. Sure its a positive, but it doesn’t warrant a move like we had today.
So why did it go up so much!? Well, take a look at this 13-D. 69% of the float is controlled by two people.
If you do the math, there is only 2.4 million shares available in the secondary markets, and if you look at the chart, it looks like somebody already purchased a large block of that so expect that number to shrink a little — how much you can’t know.
Conclusion, bullish in the short term, like the next few days, but long term I’d be very weary! Honestly we have no idea what is going to happen because the share count is so low, but it cant keep going up forever, and as of now, if you price the shares at $8.00, ELTK’s market cap is $43 200 000, which would give it an implied forward P/E ratio of 43! Also, the 70% shareholder is up almost 800%!!!! Be careful, that’s all we are saying. Good luck and god speed. Until the next time everyone!
************This is not financial advise. I am not a financial adviser, and the views expressed are purely my opinion. I do not hold any positions in the ELTK, nor do I intend to in the near future***********