Howard, GUMM was brought up on the floorless thread, so I went to look at the S-3. I see no floorless there. There are $2 MM face value of preferred, but the conversion is only at maturity (and yes, then, June 2001, it is based on 80% of the stock price in a trailing period, so there might be some weakness going into the repricing, but not a death spiral).
As for their business, you are the MD, but since they are selling this zinc based snake oil as a homeopatic ambrosia, they do not need FDA approval (just just must be careful with their labelling claims), as far as effectiveness, I would presume anything, even sugar pills (or other placebo) will elicit about 25% response of "Feel better", so they will have ample anecdotal "proof" that the snake oil will work. I think they indeed might have something, but of course it could be replaced with another fad (milk of magnesia package for colds?). Good luck.
Shorting this one into the cold season might be a Russian Roullette play.
Zeev |
