rli,
Please don't misinterpret what I said about Crest Mouthwash. I don't know if Gum Tech is involved with it, and I only tossed it out as pure speculation because Gum Tech previously conducted research on mouthwash containing Microdent and the trademark was filed on the same day as the trademark for Crest Gum. I don't see anything wrong with tossing out something that is speculative when it is clearly marked as speculative. Even though Gum Tech doesn't currently have any equipment to make mouthwash, they could be conducting R&D for P&G who would make it somewhere else.
I agree with you that nothing is absolutely conclusive until it is signed. However, two recent Gum Tech press releases said that they are working on a "significant" relationship for oral care productS, that would "result in significant growth in our gum operations". [CFO Bill Hemelt, May 12, 2000] The company reaffirmed this in their Oct 26, 2000 press release. Stocks move based on expectations for the future, so you have to look at what the future might bring.
Regarding what they used the $1.625 million for...When Gum Tech announced the relationship with P&G on Dec 1, 2000 they said "Gum Tech will use these funds to continue research and increase manufacturing capabilities". We already know that Gum Tech is only operating at about 10% to 20% capacity, and we now know that P&G needs even more capacity. Yes, nothing is final until signed, but the writing is on the wall here. It doesn't take much foresight to see that, and it appears to me that the short sellers who frequent this thread are selling out of spite rather than rational behavior. Emotional decisions such as that are just as dangerous as buying out of exuberance at a 52 week high without regard for value and risk. |
