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Biotech / Medical : GUMM - Eliminate the Common Cold
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To: Mike M who wrote (3922)8/11/2001 1:14:58 AM
From: Mark Marcellus  Read Replies (2) of 5582
 
Looks like the short squeeze possibility is increasing

Waiting for short squeezes to be created after stock buyback announcements is an exceptionally poor way to make money. But GUMM investors are well trained in the art of "wishin' & waitin' & hopin'".

What I find really interesting is that GUMM seems poised to buy back stock in the 8's after having sold a chunk of it to Wrigley at $7.50. I would have expected better from a company whose most successful endeavor has been the selling of its own stock.

I also wonder why a company with such great growth lying in front of it has no better use for its cash than a stock buyback. You would expect them to be investing in growth, not in reducing the float. I'm sure that Dan has a two page answer for me which will explain why GUMM is different from all other early stage growth companies. However, my own sneaking suspicion is that this buyback is at least partly intended to protect the stock price when Wrigley dumps their shares at the end of the lockup.
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