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

To: Ditchdigger who wrote (21877)	11/10/2000 9:18:39 AM
From: DanZ	Respond to of 29382

Ditchdigger, If you look at a quarterly report subsequent to the S3, you will find that the preferred stock that you wrote about doesn't even exist anymore. Gum Tech redeemed it in full several months ago. When Gum Tech raised $6 million from Citadel last year, the shorts tossed out buzz words such as "floorless", "death spiral", blah blah blah. There are posts on the "Floorless Preferred Stock" thread and GUMM thread last year related to this topic. Some of the shorts even admitted that it wasn't a death spiral. At any rate, this is OBE because the preferred stock doesn't exist any more and the dreaded "death spiral" never occurred. In fact, Gum Tech management is aware of "floorless death spirals" and negotiated clauses in the agreement to avoid that situation. Here are a few old links to posts on this subject: Message 11827742 Message 11834674 BTW, GUMM made a low in the 12 area near the time of those old posts and subsequently rallied to a high of 36. Gum Tech put the borrowed capital to good use. You only included part of Hemelt's quote from Gum Tech's press release. Here is the entire thing. Since your comments about this company are on the negative side, it makes me wonder why you left off the last part. Do you care to disclose if you have a position in GUMM? William Hemelt, Gum Tech's Chief Financial Officer, stated, "Gum Tech gum sales declined for the quarter, which was expected. We are diligently working to add new customers and are optimistic that our R&D work on a variety of gum products with major customers will come to fruition very soon." The following quote is from Gum Tech's May 15, 2000 press release: Hemelt continued, "Although we do not anticipate significant growth from our existing gum customers, we have made substantial progress on our nicotine gum and oral care product opportunities. In fact, we anticipate finalizing the joint venture agreement with Swedish Match in the near future. If successful, we believe that we will initiate manufacturing of products for this joint venture in early 2001. In addition, we are moving forward steadily with a major consumer products company to develop and market oral care gum products and anticipate a significant development with respect to this opportunity before year-end. When realized, these opportunities will result in significant growth in our gum operations." Put these two comments together and you can see that the gum business will be profitable "very soon". If they sign the dental gum agreement soon enough this quarter, they will be profitable this quarter, otherwise it will just move out one quarter to Q1 2001.