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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: Mad2 who wrote (4276)3/8/2003 11:59:59 AM
From: DanZ  Read Replies (2) of 5582
 
Your views on this company aren't so rational, Mad2. Let's pretend for a moment that you had no preconceived bias against MTXX, and you looked at their financial statements, growth rates, growth trends, management, etc. Would you still come to the same conclusion as today? You are just as bearish on this company no matter what the price, no matter what they do, as you claim that I am bullish no matter what the price, no matter what they do.

Here are a few data points that I posted on Yahoo.


Valuation Metrics:
MTXX Industry Sector
Price to sales 3.0 8.8 5.0
Price to book 2.8 4.4 6.3
Price to tangible book 7.7 10.5 11.5

Growth Rates:

Sales (MRQ) vs Qtr last year 110.2% 32.8% 12.6%
Sales (TTM) vs TTM last year 46.5% 28.6% 12.8%
Sales 5 year growth rate 38.8% 27.4% 15.0%


Now look forward one year. The company said that they expect to increase sales 30% this year. How will the ratios look one year forward? How much will the company earn if sales increase 30%? How's the cash flow? How much debt do they have? By what percentage will earnings increase from 2002 to 2003? Forget about the PE on last year's earnings, what is the forward PE?

If you think that MTXX is overvalued, then you must really think that the industry and sector are overvalued. Maybe you should short the industry and sector because they have higher multiples than Matrixx and lower growth rates. Maybe you should go onto the threads of all those "overvalued" stocks and harass their investors and falsely accuse them of being paid touts for posting positive opinions about the company's that they are invested in. Let's see what kind of reaction they have when placed in a defensive mode by idiot short sellers on the Internet yelling "fraud" in nearly every one of their posts. How about it Mad2?
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