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

To: Mark Marcellus who wrote (1046)	10/10/1999 11:59:00 AM
From: DanZ	Respond to of 5582

Mark, Regarding the perception that I'm shilling for GUMM, Wexler and his cohorts go out of their way to put people on the defensive. It is part of their game to support their bogus theories of stock promotion frauds. One can nearly always find a strong believer who defends a company against bogus fraud claims. This is human nature, but it doesn't mean that a stock promotion fraud or any other fraud exists. Howard, Mike, and I are only three shareholders out of about 3,000, and I think it is really dumb to short a stock on the basis of our support for the company. Our honesty and high regard for ethics, combined with our large stakes in GumTech, probably account for our defense of the company. I probably erred in allowing myself to become a victim of Wexler's game and will make an effort to avoid giving the perception that I am excessively supporting GUMM. This has never been my intention and I regret that this perception exists. I agree that GUMM does not meet all the requirements of a CANSLIM stock at this time although I think that you have misinterpreted the meaning of the N, S, L, and I attributes. The N attribute relates to new products, new management, and new highs in the stock and I think GUMM meets these. The S attribute doesn't have anything to do with earnings. It has to do with the market capitalization and I think that GUMM meets this requirement. Increasing institutional sponsorship is more important than high institutional sponsorship for the I attribute. In fact, Mr. O'Neils cautions in his book that stocks with a high institutional sponsorship may already be over-owned. The number of institutions owning shares of GUMM has been trending up, as have the number of shares that they own. GumTech's relative strength per IBD is 84 so it is not lagging. Even though the RS might be down from where it was last month (for example), you can't conclude that the stock is a laggard until the RS falls below a certain threshold. For example, I wouldn't consider a stock whose RS declined from 95 to 88 a laggard. This is more likely just a consolidation or correction. I agree with you that this doesn't make much difference. GUMM is a favorite of some users of the AIM system because of its volatility and I was just curious if it met the requirements of a CANSLIM stock. I apologize for misinterpreting your bias to short stocks. Best of luck with your investments. Dan

To: Mark Marcellus who wrote (1046)	10/13/1999 12:03:00 PM
From: Mike M	Respond to of 5582

Maybe Wexler knew more than he was letting on, or maybe he just has a good nose for these things, but the pattern so far is hauntingly familiar. Just curious as to which pattern you are referring? Do you mean Dan's eager defense of the company and its product(s)? I've never seen a guy make a more concerted search for the truth than Dan has. He may have been overzealous in attempting to conform GUMM to CANSLIM but that is somewhat subjective and not related to the defense of management against Wexler's claim of "stock fraud and manipulation"..... I have 30 years of investment experience and when I put serious money into a new company it is only after I have taken the time to visit the company and gotten to know the management. If you aren't willing to do that, fine, you probably shouldn't have a position. I just think that Wexler's admitted three minute dd and continuous tirade is unconscionable. To credit his nose is perhaps another approach but not one I would bet a plug nickel on.