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Strategies & Market Trends : The GUMMMy Bear Squad touting Gum Tech (NASDAQ: GUMM)
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To: Mad2 who wrote (194)5/21/2000 10:18:00 AM
From: DanZ  Read Replies (1) of 207
 
<Insider selling increases the supply of free traded shares which does effect the supply/demand of the stock.>

I agree, but in the case of GUMM, this is PAST tense. Your other comments about insider selling ignore the difference between OPTION related selling and DIRECT selling of stock by insiders.

<revenue growth with no profit has lost it's popularity>

The capital asset pricing model doesn't change over time, nor do other financial methods of valuing corporations. Investor's perceptions of value definitely changes over time, and this is why people who correctly value firms irrespective of short term movements in stock prices will make money over time. Sustained revenue growth is important when proforma income statements indicate that a company will be profitable in the future. Stocks don't discount the past; they discount the future. This will never change, and in the long term, GUMM will increase in value if the company continues to grow revenues. At some point, the company will pass their break even point and realize economies of scale in their gum business. Revenues from nicotine gum and dental gum will make Gum Tech's gum business profitable. If you don't recognize this, then either you don't understand finance or you don't understand Gum Tech's business in great enough detail to make any reasonable or believable comments.
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