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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Bo Didley who wrote (21875)	11/9/2000 4:49:25 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 29382

Hi Bo,,I was of the understanding that GUMM was a great short candidate..(not to mention a spam candidate<g>) "William Hemelt, Gum Tech's Chief Financial Officer, stated, ``Gum Tech gum sales declined for the quarter, which was expected" From the filing it appears sales are drying up..only $1.8mm in sales for Q3. I'm not much of a TA expert,but GUMM's chart looks very weak. xocharts.com Why have no insiders purchased shares? Exercise options and dump the shares appears to be the perferred investment style of management. biz.yahoo.com Why do you feel this is a sound investment? Just because of the short position?..TIA. I'm thinking a price of 10 will be seen sooner, than latter..JMHO though. PS: I see your an investment advisor, so I'm sure you're familiar with the term. floorless, death spiral,preferred stock? Have you read the company S3 filings? "SERIES A PREFERRED STOCK We have authorized, issued, and outstanding 1,200 shares of our Series A Preferred Stock. These shares have no par value per share and are automatically convertible on June 2, 2001 into common stock at a conversion price equal to 80% of the average trading price of the common stock during the 20 trading days prior to the maturity date. " That my friend is a floorless placement 10kwizard.com

To: Bo Didley who wrote (21875)	11/9/2000 5:13:11 AM
From: Ditchdigger	Read Replies (2) \| Respond to of 29382

Bo, please give us some more info..This company needs to come up with a bunch of cash in 2001 "DESCRIPTION OF NOTES On June 2, 1999, we issued $4,000,000 in aggregate principal amount of 8% Senior Secured Redeemable Notes to Fisher Capital Ltd. and Wingate Capital Ltd. Pursuant to the terms of these notes, we must repay the principal amount on June 2, 2001, and pay interest on the unpaid balance at 8% per annum from June 2, 1999, payable quarterly on June 30, September 30, December 31, and March 31 of each year, commencing June 30, 1999 until the principal becomes due and payable. To the extent permitted by applicable law, upon the occurrence of an event of default, for the period from the date of the event of default to the date the event of default is either cured or waived, the interest on the unpaid balance of the notes will be increased to a rate of 15% per annum. We may prepay all or any part of the notes at any time, and must prepay at least 16.7% of the current outstanding balance of the notes by March 31, 2000 on a pro-rata basis at a price equal to 110% of the principal amount so prepaid, plus accrued interest to the date of prepayment. Prepayment may be made in cash or by issuance of a number of shares of common stock determined by dividing the prepayment amount by the average of the closing bid prices of the Common Stock for the 20 consecutive trading days immediately preceding the date of the notice of prepayment. On September 9, 1999, we redeemed $800,000 in aggregate principal amount of these notes for Common Stock and on November 16, 1999, we redeemed an additional $800,000 in aggregate principal amount of these notes for Common Stock. Consequently, $2,400,000 in aggregate principal amount of these notes remains outstanding. OPTIONS STOCK OPTION PLAN Pursuant to our stock option plan, we have granted to our employees, officers, directors, and an outside consultant(never like to see "consultants" with their hands in the share till) or reserved for issuance options to acquire 912,250 shares of our common stock. All of the options granted to date have exercise prices equal to the market price of the underlying common stock on the date the respective options were granted." Perhaps these placements and options explain the large increase in outstanding shares(dilution) reported in the last year or so..