Hank,
I don't understand why you are so concerned about who is
invested in GUMM, especially when you have repeatedly said
that you have no position in the stock. Are you
everybody's financial advisor? Everybody has a different
tolerance for risk, and what might be speculative to you
may not be speculative to somebody else.
You don't give Gumtech credit where they are due, but I
think this is a result of your obvious hatred for the
company for whatever reason than anything tangible. The
new management took over in February 1998. Listed below is
their revenue since that time. They have a proven track
record whether you want to give them credit or not. If you
don't believe that these numbers are factual, then feel
free to verify them in the SEC filings.
Quarter Revenue Sequential Qtr to Qtr
(000s) Qrtrly Growth Annual Growth
Dec97 1,184
Mar98 1,104 -6.8% 52.5%
Jun98 1,213 9.9% 107.7%
Sep98 1,286 6.0% 0.1%
Dec98 1,670 29.9% 41.1%
Mar99 2,446 46.5% 121.6%
Jun99 1,919 -21.6% 58.2%
Sep99 E 3,800 98.0% 195.5% E
Note: E is my estimate for the Sep 99 quarter as I posted earlier.
Revenue last 12 trailing months: $7,321,000
Revenue previous 12 trailing months: $4,786,000
Growth for last 12 trailing months: 53.0%
It is important to note that Gumtech's revenue growth has
come predominately from their gum business. Zicam
contributed negligible sales in the June 99 quarter and only
$368,092 in the March 99 quarter. Excluding sales of Zicam
in the March 99 quarter, Gumtech's revenue still grew a
hefty 24.4% sequentially and 88.2% on a quarter to quarter
annual comparison.
It doesn't take a genius to see that Gumtech's gum business
is poised for even more rapid growth when they start
selling nicotine gum through their joint venture. The
company said at the last shareholder's meeting that they
plan to sign the joint venture by the end of this year.
Rumor has it that Gumtech is teaming up with a tobacco
company rather than a company like Watson Pharmaceuticals
or Smith-Kline Beechum that only sells nicotine cessation
products. If true, the revenue growth from the joint
venture will undoubtedly be huge when compared to the
company's current size. You may not have this vision, but
I do, and many other investors do as well.
Zicam also has very explosive growth prospects both
domestically and internationally. When you put it all
together, the writing is on the wall that this is a very
good investment. So what if you have a personal vendetta
with the company or a few of its shareholders. That has no
bearing on whether GUMM is a good investment and I suspect
that "Hank" and "Bill Wexler" won't want anybody to remind
them how wrong they were about Gumtech in another year.
Regards,
Dan |
