Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (6232)	1/20/2000 6:27:00 PM
From: DanZ	Respond to of 10293

Bill, Thanks for your reasonable comments. I believe that Gum Tech will earn a profit in the fourth quarter 99 that will almost entirely eliminate their loss for the first three quarters of 99. One problem with your strategy of waiting to see earnings before covering your short is that the stock will probably move up in anticipation of the earnings, among other things. I disagree that the price of GUMM is moving up on speculation by scientific illiterates. IMO, it is moving up because investors believe that the company will have earnings this year and/or are speculating that positive clinical studies will be released soon. Other factors that could be driving the price are speculation about a dental gum contract with a company such as Proctor and Gamble or Colgate, finalization of the nicotine gum joint venture with Swedish Match, and international distribution of Zicam which should add significantly to revenue and profits this year. Additional analyst coverage may also be in the cards. I agree that the price would be doomed to collapse if the earnings that investors expect don't materialize. If I thought that this would be the case, I would be selling right now instead of holding. Based on my projections, I believe that Gum Tech will earn more than $2.00 per share this year. If I'm right, the stock will trade much higher than today's close of 23 1/4. Good luck with your position. Dan

To: Bill Wexler who wrote (6232)	1/21/2000 8:48:00 PM
From: Mike M	Respond to of 10293

As soon as GUMM demonstrates that its claims are true and I see actual earnings on the bottom line, I will be happy to cover my short position and admit publicly that I was wrong. In the mean time the price of poker is going up.

To: Bill Wexler who wrote (6232)	1/21/2000 11:39:00 PM
From: Mike M	Respond to of 10293

Without earnings, the price is doomed to collapse, and the vast majority of the speculators will lose money. That little objection goes away soon. Thanks for being patient. http://finance.yahoo.com/q?s=gumm&d=2y