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

To: Mark Marcellus who wrote (1044)	10/9/1999 1:23:00 PM
From: DanZ	Read Replies (1) \| Respond to of 5582

Mark: Thanks for your comments. I'll take into account your bias towards shorting stocks and the fact that you frequent the Dog Pound thread when considering your opinion. Funny how nobody on the CANSLIM thread even came close to your ridiculous claim that my opening comment sounded like I was trying to sell GumTech's stock. I simply quoted text from William O'Neil's book and asked for feedback. <However, I'm quite confident that your substitution of revenues for earnings in doing the CANSLIM evaluation is dead wrong.> I didn't say that GumTech met the requirements of the C and A attributes. I clearly asked if anyone knew what Mr. O'Neil might think about substituting revenues for earnings. Message 11449109 <Revenues don't validate the business model, earnings do> I agree halfway. Revenue growth validates the ability of a company to grow its top line. When a company grows its revenues over 100% Y to Y and ~40% Q to Q consistently, you have to give them some credit. One has to look at why they lost money with this much revenue growth. In the case of GumTech, it is primarily due to building up their capacity in advance of nicotine gum. They also had some extraordinary expenses that are of no consequence whatsoever. <I think you're on shaky ground with most of the CANSLIM attributes (other than the overall market)> Ok, let's assume that revenue growth can't be submitted for earnings growth. That would exclude the C and A attributes. They still meet the requirements of the N, S, L, I, and M attributes. By the time they meet the C and A attributes, the stock will be trading much higher than 13. BTW, are you short GUMM?