(PR NEWSWIRE) GunnAllen Financial Reiterates Buy Rating on GumTech Interna
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
of 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.
SOURCE GunnAllen Financial
-0- 01/28/99
/CONTACT: David Rich of GunnAllen Financial, 800-713-4046, ext. 234 or
drich@gunnallen.com/
/Web site: gunnallen.com
(GUMM)
CO: GunnAllen Financial; Gum Tech International
ST: Florida, Arizona
IN: FIN HOU REA
SU: ECO |
