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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (2468)	7/21/1999 6:00:00 PM
From: DanZ	Read Replies (1) \| Respond to of 10293

Bill, Anybody can speculate on a company's future earnings and there is no guarantee that you will be right and others will be wrong. You apparently think that GumTech will never earn a profit and I think they will be profitable within the next couple of quarters. GumTech's break even point is about $2.5 million in sales per quarter (excluding Zicam) and they are almost there. Beyond $2.5 million in sales, their margins will grow rapidly because their cost of goods sold is very small compared to their fixed costs. When they start selling into the nearly $1 billion nicotine gum market, the amount of money that they might make could knock your shorts off, literally. While the price of the stock might look expensive based on past earnings, investors are starting to discount the potential of Zicam and nicotine gum. Based on proforma statements, the stock is cheap IMO. Stock prices don't look in the rear view mirror and investors that do could lose as a result. Enjoy, Dan