GunnAllen Financial Reiterates Buy Rating on GumTech International with
12-Month Price Target of $24
TAMPA, Fla., Jan. 28 /PRNewswire/ -- The following is being issued by
GunnAllen Financial, a member of the National Association of Securities
Dealers, CRD number 17609:
Phoenix, AZ-based GumTech International (Nasdaq: GUMM) develops, markets,
and distributes specialty chewing gum products under its own label, on a
private-label basis, and for household-name confectionery companies,
including BreathAsure Dental Gum and AcuTrim Diet Gum. 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 U.S. Food and Drug Administration to produce over-the
counter drug containing products.
GumTech today announced the formation of an LLC to jointly develop and
market ZICAM, a homeopathic nasal gel designed to substantially reduce the
duration of the symptoms of the common cold. At any one time, nearly
one-third of all Americans had a cold in the previous two weeks. In
addition, children have about six to eight colds per year, with some
children suffering from as many as 12 in a one-year period.
The science behind ZICAM can be found at the ZICAM website: www.zicam.com.
Expenditures on OTC remedies for this ailment approximate $1.5 billion in
the U.S alone. GunnAllen believes that ZICAM offers tremendous upside
potential to its current FY1999 revenue forecast of $23 million, and may add
as much as $0.30 per share to its FY1999 estimate of $0.47 per diluted
share.
GunnAllen Financial continues to believe in the GumTech story independent o
ZICAM. The functional chewing gum market is growing rapidly as evidenced by
the number of new products hitting store shelves. In addition to dental
gum, GunnAllen believes there is still room in the diet sector.
Furthermore, with the February 9, 1999 expiration of the new product
exclusivity period for SmithKline Beecham Consumer Healthcare's Nicorette
Gum under the Waxman-Hatch Act, a huge market for private label and branded
nicotine-containing gums appears evident.
GunnAllen is reiterating their buy rating on GumTech with a twelve-month
price target of $24.
/CONTACT: David Rich of GunnAllen Financial, 800-713-4046, ext. 234 or
drich@gunnallen.com/
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