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Non-Tech : GUMM - Gumm Tech International Inc.
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To: Mike M who wrote (53)11/23/1997 8:20:00 PM
From: Allan F  Read Replies (1) of 148
 
The following site shows GUMM's outstanding as 6.6M shares:
dailystocks.net

Next, I used the plant as the barrier to entry. If you agree there is very little proprietery technology in manufacturing and wrapping gum, GUMM can only be worth their ability to produce and sell it. I think of it as buying Mike's Excavating business. Assuming he is new to a market, (as GUMM is) he has very little good will and long-term relationships with other contractors; his ability to sell is a big question. Now, why would you buy Mike's Excavating for 3x the cost of a dump truck, trailer, and backhoe when you could just go out and buy those items yourself?

Maybe your right, maybe it is too crude, but since I do not know their plant capacity or revenue/earning potential or their ability to sell fad(?) gum I need to go on something. First I want to verify they can produce enough gum to make a profit in line with their market cap. Then I want to know how much of that gum they have to sell to make a profit in line with their market cap. By in line with their market cap I am saying the premimum one pays for the stock of GUMM versus going out and building one's own plant, which leads to the question of GUMM's worth beyond the value of their physical plant, which leads back to Gerry Kern's ability to deliver. (Ahhh well, back to where we started.)

Waiting is no play at all....That is just being a spectator

Better a specator than a speculator...<gg>

-Allan
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