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

To: pz who wrote (4399)	5/13/2003 11:36:10 PM
From: DanZ	Read Replies (3) \| Respond to of 5582

Paul, There's no doubt that in 1999 and 2000, I was too optimistic about how fast this company would grow. A lot of things have changed since then, not the least of which is the sale of the gum business to Wrigley, an entirely new management team, and new products. I am much more humble about this stock today than I was in 2000. Regardless of what you think about my opinions of this company two or three years ago, do you think that I am being emotional today? The company is helping investors by putting out better guidance now. The former management team didn't provide any guidance whatsoever. The company recently said that they expect about 30% top line growth for at least the next two years, operating expenses about equal to last year, and R&D about 6% of sales. It doesn't take a rocket scientist to plug that data into a spreadsheet and come out with about 26 cents net earnings per share this year. That would translate into bottom line growth of over 80% with another year of growth ahead in 2004. So the question is whether you think the stock is worth more than 2.5 times sales and a PEG of 0.3 given that growth potential. I think that the answer is clearly yes, and there's no emotion in that opinion. Dan