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Strategies & Market Trends : The GUMMMy Bear Squad touting Gum Tech (NASDAQ: GUMM)

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To: DanZ who wrote (81)12/29/1999 6:15:00 PM
From: Mad2  Read Replies (1) of 207
 
Dan GUMM closed today at 15 3/4 which by my calc's is 2 3/4 above the point when I shorted and 5 3/4 where I covered, a 20-50% swing in 11 months depending on how you want to do the math.
Since that time I have acknolledged GUMM's potential to move up based upon expectations for ZICAM. While I'm not sure when GUMM reports for the 4th (Feburary????), GUMM could see another spike however I expect that it'll be downhill from there as I don't see how GUMM's operating results throughout 2000 will improve as ZICAM is seasonal.....this thing with Swedish Match could help GUMM, however not enough to justify GUMM's valuation......at this point the JV is funded to explore market opportunities through SM's distribution channels, with SM having the majority say so......many hurdles to overcome before its clear how GUMM shareholders will benifit.
In the meantime its not clear that GUMM will make money or report income and to the extent they need additional funds they will likely get them through the issuance of stock and warrants under favorable terms (ie dilutive to existing equity holders).
A lousy long in my opinion.
Mad2
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