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

To: Bo Didley who wrote (749)	8/4/1999 1:24:00 AM
From: DanZ	Read Replies (1) \| Respond to of 5582

Bo, Two big buyers represented by HRZG and SLKC have been buying recently. Somebody has also been buying through ECNs including INCA, REDI, and STRK. STRK traded GUMM for the first time ever yesterday and bought what looked like about 20,000 shares. These buyers are very aggressive between 11 3/4 and 12 1/4 but pull back and wait for more sellers after they take out the offers up to that level. They are accumulating a large position, but doing it smartly. I don't think they would drop their bid if 1) there was more competition on the bid, and 2) sellers would stop hitting their bid. For example, at the end of the day HRZG's bid was at 11 7/8 and the next lowest bid was at 11 11/16. He moved to 11 7/8 and took out a bunch of stock at 12 after trying unsuccessfully to buy stock lower all day. Then a few traders hit his bid so he moved down to 11 3/4. There's no reason to pay an extra 1/8 because nobody else was bidding 11 3/4. Nobody should be fooled by the end of day sales because the money flow has been positive seven of the past eight trading days. Today's money flow was particularly strong, with nearly 50% of the volume coming on up ticks and a positive inflow of $356,784. The money flow volume was strong for any stock and the money flow in dollars was strong for GUMM. You can't assume that a stock will go up just because somebody big is buying it; however, I like the fact that we are getting some institutional sponsorship for two reasons: 1. They are mostly long term investors and this should reduce the trading float even more. 2. They must have done DD and decided that GUMM was a good risk. Sustained periods of positive money flow usually preempt a move up in a stock so I think it's only a matter of time before the stock breaks out of the current trading range to the upside. The recent shorts aren't making any money, and most of them are probably short term traders who won't stay in the stock past 14. If it gets to 13 3/4, I'd look for a quick pop to 15 on short covering alone. Dan