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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (1023)	11/5/1999 8:30:00 PM
From: Zeev Hed	Respond to of 1438

Gerald, I believe I looked at GUMM's financials few months back when a similar claim was made and could not find a floorless there. Maybe I missed something. Zeev

To: Gerald Walls who wrote (1023)	11/6/1999 9:47:00 PM
From: DanZ	Read Replies (1) \| Respond to of 1438

Gerald, I'm probably the GUMM bull that you are referring to. I have read the S-3 and 8-K pertaining to the Citadel financing word for word several times and discussed it with GumTech management several times as well to make sure that I understood it. They took great pains to make sure that it wasn't a "floorless" or "spiral convert", and even turned down such proposals from other lenders because they didn't think this was in the best interest of shareholders. Brown Russell (Chairman of the Board and Director of IR and Legal Affairs) and Bill Hemelt (CFO) are smarter and have much more integrity than you read from short sellers on SI who don't know them or even have any interest in knowing them. Some short sellers use negative buzz words to justify their short positions or scare longs just as much as some bulls dismiss what shorts say without really knowing whether it is true. I'm a straight shooter and am always up for an honest debate on GUMM or any other stock that I own. In my honest opinion, the Citadel financing is not a floorless debenture. The company's management did an outstanding job of securing financing with very favorable terms for shareholders. I welcome you to read the SEC filings to see if you can find anything that concerns you. The 8-K contains the most detail but you might find the S-3 worth reading as well. 8-K freeedgar.com S-3 freeedgar.com Best regards, Dan