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Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (724)	7/28/1999 8:16:00 AM
From: DanZ	Read Replies (1) \| Respond to of 5582

Mad2, I have very little time to post right now but I did want to say that your fundamental analysis is looking back and not looking forward. I agree that GUMM looks overvalued based on PAST fundamentals; but it looks undervalued based on EXPECTED FUTURE fundamentals. When one trades based on fundamentals, it's a matter of preference whether to weigh the past more than the expected future. Those who hold GUMM long as an investment choose to give the expected future revenues and earnings more weight than the past. Given that stock prices look forward, I think this is the better viewpoint. With regard to your statement: <the mentioned issues surrounding control of shares in GUMM and efforts to restrict their borrow (stock manupulation scheme)> The SEC and NASD have regulations in place that restrict short sales in stocks that meet certain criteria. GUMM meets those requirements, and therefore, short sales are restricted. This has nothing to do with Gunn Allen, the company, or any other broker/dealer. The stock is restricted and hard to borrow because all the stock that can be borrowed has already been lent out. Your term "stock manipulation scheme" to describe this situation is completely without merit and a figment of your imagination. Many stocks go through periods of momentum and then consolidate. This is an important concept for day traders and short term traders, but I don't think it is important for long term investors. Best of luck, Dan

To: Mad2 who wrote (724)	7/28/1999 11:00:00 AM
From: JDN	Read Replies (1) \| Respond to of 5582

Dear Mad2: A very well thought out post. I presume you are quite experienced. However, I wonder if you considered that when a company is coming from such small numbers ie revenue/bk value and all that the fundementals can change dramatically and quickly with a sudden POP in the top line. Also, the small number of employees might be indicative of a company that doesnt actually manufacure much themselves utilizing Contract Packaging Companies and license fees for their income. Personally, I like that as Contract Packaging is a VERY low margin business and they can easily control costs quickly that way. JDN