Wednesday July 22, 1:21 pm Eastern Time
Company Press Release
SOURCE: GunnAllen Financial
GunnAllen Financial Reiterates Buy Rating on GumTech International with Short Term Price
Target of $14.00 Per Share
TAMPA, Fla., July 22 /PRNewswire/ -- The following was released today by GunnAllen Financial:
Phoenix, Arizona-based GumTech International (Nasdaq: GUMM - news) develops, markets, and distributes specialty chewing gum products under its own
brand names and on a private label basis for other chewing gum marketers. The gums are designed to provide functional health benefits to consumers, and are
manufactured in the only stainless steel gum manufacturing facility registered with the Food and Drug Administration to produce over-the-counter products.
On July 16, GumTech announced a long-term manufacturing agreement to produce private label dental gum for Ranir/DCP Corporation, a worldwide market
leader in the distribution of private label oral care products. The Ranir contract was subsequent to an agreement with BreathAsure, the leader in the breath
capsule, drop, and spray category, to produce a gum marketed and sold under the name ''BreathAsure Dental Gum(R).'' While the company has not disclosed
the value of either deal, we believe that the preliminary value of the combined contracts could be worth an estimated $10-20 million in annual revenues for
GumTech.
We continue to believe in the growth prospects of the functional chewing gum market and specifically GumTech as a participant. We support this view with the
entrance of the above-mentioned brand name companies into the market and the ability of GumTech to attract and retain partners with marketing and distribution
leadership in their respective industries (i.e. private label dental products; breath capsules, drops, and sprays; pharmaceuticals; etc.)
GumTech is publicly traded on the Nasdaq National Market System under the ticker symbol GUMM.
Copies of GunnAllen research are available by calling (800) 713-4046, or visiting our website at gunnallen.com and viewing the GunnAllen research
page.
SOURCE: GunnAllen Financial |
