GUMM.
Ice,
Thanks for posting the MarketEdge data for GUMM. I used to subscribe to that service but canceled it about a year ago. I agree that GUMM is a good buy, although no stock is without risk. I posted some comments about the GUMM chart at beta.siliconinvestor.com.
I think five things hold the key to where GUMM trades between now and the end of the year. These are the second round of clinical studies for Zicam, publication of the first study in the New England Journal of Medicine or other reputable journal, domestic and international sales of Zicam, international sales of nicotine gum, and an acceptable plan for obtaining FDA approval to sell nicotine gum domestically. If these things are successful, I think the stock will trade much higher. If they are only successful with Zicam or nicotine gum, I think the stock will trade higher, just not as high as if they win in all markets. The biggest risk is that they will fail with both Zicam and nicotine gum but I think the odds of that happening are very small.
The company is incrementally demonstrating that Zicam will be successful by getting it into Walmart, Rite Aid, Albertsons, Eckerds, and nearly every mainstream retailer for the upcoming cold season. The first clinical study was successful and had a very high statistical significance and I am confident that it will be accepted for publication in a medical journal such as the NEJM. The company is in discussions to make nicotine gum for international distribution and is in the process of applying for an ANDA so they can sell nicotine gum domestically. This is a very lucrative market and would have a big impact on the company's revenue and earnings.
The stock has shown good support at about 11 1/2 while consolidating the recent move from the base at 9 1/2. The chart is confirming my belief in GumTech's bullish future and I am confident that the stock will be a big winner over the next few months.
Dan |
