GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: Mad2 who wrote (4022)	11/30/2001 5:45:48 PM
From: Mike M	of 5582

Come on mad you are overstating the case. "All along insiders were selling" is a red herring. Selling some shares to raise the cash to pay the taxes and the options exercise price doesn't mean insiders were doing anything unscrupulous or unreasonable. In fact, I could be wrong but I can't remember insiders selling anywhere near the $30 area. Furthermore I can name several significant insiders who never sold a share. Almost all insider selling was done around the exercise period or as a result of margin calls. That doesn't suggest that insiders have been doing all that well. Shareholders on the other hand had every opportunity to sell the stock at $35 had they so desired. I did. I wish that it had been more than 20% of my stash but won't cry over spilt milk. The bio tech guys are not gone yet. But they will be because they have no choice. The deal was inked over three years ago and is just now being played out. There isn't any telling whether Zensano is happy or not that they are out of the Gel Tech picture. That GUMM buy and hold shareholders are no better off than 3-4 years ago is perhaps true but then I recall holding QCOM nearly that long before it paid off. No, they aren't the same. But that is what makes it a market. To say that the company isn't a better company would, of course, be wrong. It has gone from a gum manufacturer that never made money, that was $6M in covenant debt and had all the shorts circling in for the kill to a company with over $20M in cash (yes even after the initial $6.1M is paid), owning 100% of Gel Tech with a growing revenue stream, nicotine gum IP and possible future revenue from Wrigley. You may be right that the stock is overpriced. You may also be wrong. I happen to disagree with you. Moreover, Wrigley has a far better understanding of the business than either of us and they bought 200K shares as an investment at a premium to current price. Execution of the business plan will be the key determinant and I hope that the new management has more success than have the old ones. I appreciate your comments and encourage you to continue to weigh in regarding relative merit of the company. I just ask you to be as objective as possible.

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