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

To: Mike M who wrote (3447)	12/12/2000 9:08:50 AM
From: DanZ	Respond to of 5582

Someone in a club on Yahoo found a Danish company named Fertin Pharma this morning. fertin.com If Fertin is successful, then that part of Gum Tech's business should be successful as well. Here is a quote from Fertin's profile page: "Nicotine chewing gum paved the way. The time has come to offer medical chewing gum as a drug delivery system in various therapeutic areas." If chewing gum becomes a marketable method of delivering drugs, the size of the market could be very large, and Gum Tech is in a good position to gain a big part of it due to their expertise, reputation, and now large partners. I haven't had time to look around Fertin's website yet so I don't know much about their strategy or financial condition. While a single company selling medical chewing gum doesn't mean there is a big market for gum as a delivery system for drugs, it warrants further investigation. BTW, Market Guide joined Zacks yesterday to include Gum Tech in the Healthcare sector, Biotechnology & Drugs industry. The past growth in sales of GUMM is much higher than that of other companies in their sector and industry groups. Given that Gum Tech's sales should continue to rise with sales to at least P&G and Swedish Match, even if the price to sales ratio remains constant, the stock should rise from here. I'm betting that the p/s ratio will expand back towards its normal value in the 10 to 15 area. What happens when a company's p/s expands and their sales grow? Duh, the stock goes up.