SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : GUMM - Gumm Tech International Inc.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Allan F who wrote (50)11/21/1997 10:32:00 PM
From: Mike M   of 148
 
Allan-

Whoa there Nellie! Revenue capacity...for somebody who, as Anax likes to say, is only making specialty gum...But that, of course, is the beauty! How fast can you design the package, coat the gum and package it...How complicated is the machinery? "Capacity" has little meaning here. The real question is, how many customers can you find? The answer is, a lot!

For margins I will defer to Mr Kern's comments on the telephone conference...after fixed costs, each $8M sales reaps about $1.5M profit...using his math, $25M would bring close to $5M net or a buck a share.

If this were the only sales it might justify a PE of 15...But this is still small potatoes compared to Nabisco,( IMHO).
Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News