Buyers of the recent volume
James, there have always been buyers of GUMM and
many on the sidelines waiting to buy, as soon as
it broke out of its $10 trading range. When it broke
out of the range, it triggered those individuals buying.
Many have known about ZICAM and have waited for the
beginning of the cold season to begin establishing a
major position. One of the buyers in the recent
price movement was a mutual fund. They wanted to buy
a head of everyone else who will begin accumulating
in another month. I made a promise not to reveal
the name of the fund, but suffice it to say, everyone
would recognize the name. I don't know if they are
through buying.
Individual investors have also been waiting for the
beginning of the cold season to buy GUMM. Some of
them probably saw the movement and began to buy
a little early as well. Everyone who has followed GUMM
knows that it is going to make a tremendous move throughout
the upcoming cold season. Then coupled with the potential
Nicorette Gum contract(s) it will go up higher. Fourth quarter
earnings posted next April are going to be phenominal.
This is a stock for investors. The people I personally know who have
been making large investments, are mainly doctors and
pharmacists who realize the impact of ZICAM. My own patients
who have elimated colds using Zicam have become shareholders
and staunch believers. We are in for a very long term investment,
in which this is barely the beginning.
Some shorts had a certain stop-out and covered during
the recent small movement. In the past, the major short
players of GUMM have been very stubborn at covering. They
did not cover when the stock ran up to $15 earlier in the year.
Shorts have said in the past that $15 would be their stop out.
From what I gather, it is believed that the current short squeeze
that will occur later this week and the week following will be do
to a letter that is being sent out by a clearing firm named RPR.
This clearing firm holds around 4 million shares of GUMM for Gun Allen's clients.
They have loaned shares to other firms for their
clients to short. Gun Allen is changing clearing firms and so
RPR has to inform the other firms that they need the loaned shares back.
This letter is suppose to be recieved by the firms on Monday.
Then the firms will notify the stubborn individuals that they are required to cover. So to answer your question straight out, I think
very few short shares have been covered during the recent price movement.
Some of the volume has been from longs buying in anticipation of the major short squeeze which will occur later this week and going into next week. This coupled by others going long because of wanting to own a piece of "zicam" before the cold season,
and others buying out of anticipation of a gigantic Nicorette contract, bodes well for those who are long the stock for the foreseeable future.
Regards,
S.W. |
