Donald J. Gunn JR's CRD# 1442917 Alleged Scheme
Floyd D. Schneider's complaint will allege that NASDAQ broker Donald J. Gunn Jr of GunnAllen Financial organized a "cartel" to purchase a huge percentage of the Gum Tech/ Matrixx of over 4 million shares. Gunn then allegedly arranged for a number of other brokers in the firm to conspire to control almost the entire float of GUMM/MTXX stock.
At the time of Donald J. Gunn Jr's alleged manipulation the trading float of GUMM was 5.6 million shares. Using a conservative 4 million shares this meant that 1 broker controlled an amazing 71.42% of the tradable float. Aided buy his stock broker cohorts at GunnAllen the firms clients where able to control the remaining 1.6 million share float of the GunnAllen "House Stock".
Schnieder claims subsequently to have learned that Donald J. Gunn Jr. and his associates had continued to buy the stock to manipulate a short squeeze. Through an undisclosed lock up agreement the scheme was aided by Donald J. Gunn's "catrel" not to sell the stock.
Donald J. Gunn Jr further manipulated the stock of GUMM?MTXX by making sure that the stock was not to be loaned out and over 4 million shares of his clients accounts where placed in cash accounts to further his manipulative scheme.
Donald J. Gunn Jr. Further more started telling message board posters and investors of gumm of this non disclosed conspiracy. Then Donald J. Gunn Jr scheme was aided further by him telling people interested in trading the stock that this "Cartel" was not going to sell any of their shares of GUMM stock until the company was "Bought out."
INTERNET STOCK TOUT DAN ZIMMERMAN AND GUMM ANALYST CONFIRMS THE ALEDGED SCHEME
In Dan Zimmermann's 1999 post Dan confirms what has always not been known. Dan states "It is my understanding that GunnAllen customers own between 60 and 65 percent of GUMM".
60% to 65% of GUMM stock at the time represeted almost the entire float of Gum Tech at the time of the manipulation.
Like all good schemes Donald would find out that when you tell such secrets "NEVER POST IT ON AN INTERNET WEB CHAT SITE." Unfortunatly that is exactly what had occured.
Donald would soon find out that the perfect sheme would soon become a nightmare.
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"Jay Gunn 1-800-713-4046 his long term clients own over 4 million shares and they have no intention to sell until the company gets bought out.(Talk to him about the buyout price of GUMM)"
To:Bo Didley who wrote (7)
From: J. Gunn,Jr Friday, Jan 22, 1999 1:47 PM
View Replies (1) | Respond to of 130
Any information credited to me by bo didley or any other person or message board is inaccurate and unauthorized. I have made no previous postings regarding any stock and I will make no future postings.
J. Gunn
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BO DOES KNOW DIDDLY
"GunnAllen Financial
Jay Gunn 1-800-713-4046
his long term clients own over 4 million shares
and they have no intention to sell until the company gets bought out.
(Talk to him about the buyout price of GUMM)
bo"
To:Howard D. Epstein, M.D. who wrote (6)
From: Bo Didley Thursday, Jan 21, 1999 1:42 PM
View Replies (3) | Respond to of 130
GUMM --- STRONG BUY RATING -- $24
We are reiterating our Buy rating on GumTech International with a FY 1999 price objective of $24. This price objective is based on sales estimates of $23.5 million and $56.1 million for FY1999 and FY2000, respectively. Based on our sales estimates, GumTech could post per share earnings of $.47 for FY1999 and $1.64 for FY2000.
We continue to de-emphasize Q3 and Q4 operating results, however, based on the infancy of new product lines including Breath Asure and Ranir, and to some extent the dental gum market, while maintaining a bullish longer-term outlook. Shipments of these new gums into distribution channels have commenced, and primary indications point to strong demand for both products.
We believe that Breath Asure could capture 8.9% of the $390 million dental gum market by FY2000, while Ranir could capture as much as 7.1%. During this period we are confident that at least one, if not several, branded oral care companies will be participating in the market for dental gums.
Since the FDA apparently views plaque as a disease, and any products claiming to reduce plaque are considered to be drugs, we view GumTech's sole position as a U.S. gum manufacturing facility that currently follows the Food and Drug Administration's "drug Good Manufacturing Practices" as a clear competitive advantage in the dental gum market.
Although we decline to cite a definitive time frame, GumTech should commence domestic and international distribution of nicotine (drug) containing gums, as well as further penetrate the market for diet aiding gums, by FY 2000.
GunnAllen Financial
Jay Gunn 1-800-713-4046
his long term clients own over 4 million shares
and they have no intention to sell until the company gets bought out.
(Talk to him about the buyout price of GUMM)
bo
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Subject 25049
SI: StockTalk: Miscellaneous (Biotech/Medical) : # [GUMM] Gum Tech ------ drugs in chewing Gum
Replies: 130 Member Bookmarks: 12
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Started By: Street Walker
Date: Jan 19, 1999 2:01 PM
Gum Tech International (Nasdaq: GUMM)
The Company develops and manufactures specialty chewing gum products for branded and private label customers, as well as products marketed under the Gum Tech brand. The products contain vitamins, herbals and/or active drug ingredients. Gum Tech currently targets four market segments: oral care, smoking cessation, dietary supplement, and over-the-counter (OTC) drug.
5.6 million Float
But it will behave like it has 1.6 million float because
~4 million of the float is held by long term holders who
have extremely high price targets in the long term and have no
plans to sell. The long term share holders have removed their shares from being able to be shorted.
Each time the effective float of 1.6m is recycled the support level rises. As the effective float is recycled there will be shareholders who will simply not sell. Which means the effective float decreases while demand increases.
Regards,
S.W.
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To:Mad2 who wrote (128)
From: Dan Zimmermann Saturday, Mar 6, 1999 5:13 PM
View Replies (1) | Respond to of 130
Mad2,
My apologies...I meant to ask my question about your short position through Olde, not Datek. So here it goes again.
Did Olde tell you that you had to cover your short position within 10 days after the settlement date? Again, if you consider this too personal, no need to reply. I'm not trying to get nosy into your business; I'm just trying to find out how the rule is applied in practice. Did you know that you had to close out your short within 10 days or did the rule not apply to you? I'm just trying to understand the rule.
It is my understanding that GunnAllen customers own between 60 and 65 percent of GUMM. That is substantial and you can bet that I keep my eye on GNLN on Level II. They have yet to be on the inside offer and are almost always on the inside bid or very close to it. Their offer is usually way away from the market, sometimes up to 1 point from the inside offer. This tells me that GunnAllen continues to buy, either the market maker for his/her own account or their customers. What you can't see on Level II is if GNLN sells at the bid. You can only see their offers (limit sell orders).
Their market maker's actions are consistent with GunnAllen's rating on the stock, which is buy. They have owned GUMM for a while and I seriously doubt if they will change their rating any time soon. GunnAllen believes in the future prospects of GumTech and several GunnAllen employees own the stock. Of course, something could happen to change their opinion, but I don't see that happening in the short term because the company is growing in accordance with their projections. With the additional revenue from Zicam, GumTech may even exceed their current projections.
What more do you want to know about Geltech LLC? Maybe I can answer your questions? |
