Dan,
>If you believe the estimates, you buy GUMM. If you don't believe the estimates, you either sell GUMM or short it. I think this is the bottom line.<
I do believe someone put forth the revenue estimate, what I question is if the estimate can come to pass what realisticaly will it take to make that happen (dollars) and when. Occasionally products are grabbed by National media creating awareness that P&G or J&J spends millions on. To assume this will happen, to disregard potential future dilution, to assume GUMM gets healthy margins (what is the deal between Gel Tech and GUMM?) are all mistakes if you belive your making a investiment for the longer term. No one knows GUMM's business model here (maybe their year end filing will reveal it), however top line estimates of growth are the most important thing when you know what the business model is (revenue, gross margin, marketing expenses, inventory costs and so on). BTW a lot of investors have belived that GUMM is a leader in the the "chewing gum delivery business", unfortunatly they are still developing that business and haven't yet acheived profitabily but nearly burned up all their cash. Could GUMM be the one of a hundred that defies the odds, teters on the edge gets their act togeather and rewards their shareholders handsomely. SURE it could happen. What are the odds? The OTC is full of companies that offered the same promise at some point or another.
Untill these things are clear GUMM is a highly speculative stock period, for both longs and shorts.
Buy low sell high.
Mad2
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