GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: Hank who wrote (1232)	10/28/1999 10:16:00 AM
From: DanZ	Read Replies (1) of 5582

Hank, I'm not twisting the truth, nor have I EVER said that GUMM is a sure thing. You said that Gumtech hasn't proven anything but I don't think that you give them due credit for their revenue growth. I have also said that every stock has risk, and I believe that the risk to reward makes GUMM an excellent investment. Many companies lose money while they are growing revenues rapidly. The important thing is to evaluate why they are losing money and to determine to the best of your abilities if, when, and how profitable they will become. Gumtech's losses last year are due to two main things. 1.) Write offs due to departing management (severance packages, inventory, etc...) and 2) capital spending to ready the company for rapid growth in their gum business. The first issue is a one time charge that has no bearing on any future estimates. The second issue is bullish in the long term, especially when combined with the upcoming joint venture for nicotine gum. This isn't a rumor. The company said it will be done by the end of the year. The only unknown is who their partner is and how significant it will be. I personally believe that it will be very significant. I have provided estimates that justify why I believe Gumtech will become profitable next year and why a higher stock price is justified by the future fundamentals. <SHOW ME THE PRESS RELEASE!> Like most stocks, by the time you see the press release the stock will probably be trading much higher or much lower depending on the nature of the news. This is why I believe that technical analysis is so important. Stocks discount the future, and news typically just confirms why a stock has been moving. GUMM's chart is bullish, and I think future news will explain why.

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