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Non-Tech : Bill Wexler's Dog Pound
REFR 1.560-2.5%Nov 7 9:30 AM EST

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To: Mike M who wrote (1892)7/11/1999 2:15:00 PM
From: Mad2  Read Replies (2) of 10293
 
Tone it down Mike or your likely to attract a number of investors who perscribe to fundamental analysis to look into the story of GUMM.
I'll give you that GUMM is a story stock that has been in the process of being set up, however GUMM's fundamentals are very weak. The basic business of GUMM is a manufacturing business (and they're still loosing at that game) and will require additional capital to grow (equipment and current assets) distinguishing it from software and some other business' that rate higher p/e's etc.
The wild card with GUMM is the hype that will likely result from ZICAM, through the Gel Tech LLC with Davidson et al.. Additionally in GUMM's favor at this point is the manipulative and bucket shop mentality demonstrated by Gunn Allen (brokers) the major supporter of this thing.
My take thus far is GUMM is being set up for a clean up by Citadel. If GUMM is is really that good why didn't they get bank financing? Why not get a bridge on recievables, etc. I think the answer lies in the ability of GUMM to demonstrate that they'll be able to make money and return value to thier shareholders, however in the meantime if they get their research report out and fill some of the pipeline with ZICAM it'll provide a get story for Gunn Allen's brokers and a nifty opportunity for Citidal to make a nice piece of change.
When it's all over where will they be?
Take a look at QGLY for a peak at what happens after the fall.
Mad2
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