NASDAQ OR SEC EVER INVESTIGATE THE "LEAK"?????????
"they tried to get Swedish Match to put
more meat in it. The press release for Zicam back in
January was rushed due to the leak and they weren't
really ready to release it."
From: makemilns
Date: Tue Dec 28, 1999 12:41 pm
Subject: Hello from me and issues Part I
Hello, folks. I think that this club is a good
idea, at least temporarily until sanity and respect
return to the main board. I read all the posts from last
night and it looks like there are three main issues on
the table.<br><br>Why did the stock go down after the
nicotine gum announcement with Swedish Match?<br><br>I
think that there are a couple of reasons for this. The
stock rallied in anticipation of the news and sometimes
people take profits when news actually comes out. I
think that the reason some people sold on the news is
because the press release was vague about what would be
produced, what markets the joint venture would initially
target both in terms of products and geographic
location, how much revenue might be expected, when they
would start selling, and when the final agreement would
be signed. While I understand and recognize that
these issues exist, I also understand why the press
release didn't specify all these conditions. Swedish
Match specifically requested that these issues be left
vague because they didn't want to tip off any
competition. Gum Tech management wanted to say more in the
press release but they couldn't convince Swedish Match
to do this. The bottom line is that the value of the
joint venture is not recognized in the stock. It wasn't
fully recognized in the stock when it was trading at
20, IMO, and it's only a matter of time before the
value is recognized. The joint venture is moving
forward to quickly finalize the agreement, but they
aren't waiting for that to launch the product.<br><br>Is
Gum Tech soft-peddling their announcements? I
disagree that Gum Tech intentionally talks down their
press releases. They don't want to release news that
isn't material because it could look like they are
hyping the stock, which they DON'T want to do. One can't
blame Gum Tech for the nicotine gum press release being
vague because they tried to get Swedish Match to put
more meat in it. The press release for Zicam back in
January was rushed due to the leak and they weren't
really ready to release it. There are examples of press
releases that were very strong, including the one where
they asserted that Quigley's lawsuit was completely
without merit. They also took that opportunity to inform
investors about sales of Zicam.
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