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


To: out_of_the_loop who wrote (806)8/28/1999 12:43:00 PM
From: Mad2  Read Replies (3) | Respond to of 5582
 
Howard I hope you enjoyed your jog as I think you could use the fresh air.
GUMM sells for a P/B of 17, P/S of 11 and looses money. Last quarter (800,) or a neg margin of over 50%. This thing is valued like many of the Internuts and probably due to the retail thumping buy Gunn Allen as well as the expectations of Zicam (momentum driven hopes). Unfortunatly the products GUMM plans on selling require inventory, stock and recievables and are a bit more capital intensive (not to mention seasonal with the associated risks). This stock is momentum driven and anyone in it needs be careful. I'm simply posting a reality check against your unbridled optimism. Certianly many "bet the farm" drug stocks trade like GUMM, but shouldn't be mistaken for investment quality suck as pfe, mrk and wla.
Time of course will prove the case so we'll see where GUMM stands come Oct-Feb.
Regards,
mad2