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Strategies & Market Trends : The GUMMMy Bear Squad touting Gum Tech (NASDAQ: GUMM)

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To: Champolion who wrote (185)5/18/2000 10:18:00 AM
From: Mad2  Read Replies (1) of 207
 
Not sure I understand the point of your post.
As it relates to GUMM they reported dismal sales and neg margin on sales of traditional gum products (they hang their hat on the potential with Swedish Match and their exploratory agreement to form a JV to make nicotine gum which is still in "market development phase"). The Zicam revenue last qtr (Jan-March) which included in their language "filling backorders" up to mid January was around 4 mil, with 3.5 mil spent on advertizing, generating a neg result of around 2.0mil.
Gumm continues to be richly valued with a 100mil market cap, for a company whose future revenue and profits are highly questionable.
They have traditionally financed through stock issuance which in the past 6months depressed the stock.
I imagine it will continue to drift downward, particularly due to its poor prospects to show a profit in the near term.
This stock does however move quite a bit on speculative expectations so who knows whats up their sleeve. Should speculative stocks come back into favor this one could make some upward movement, particularly in the fall based on expectations for ZICAM, although I don't see it getting back to the 30's as its a bit "broken" and besides inventory exists in their channel.
mad2
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