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Non-Tech : GUMM - Gumm Tech International Inc. -- Ignore unavailable to you. Want to Upgrade?

To: SuiteStock who wrote (49)	11/21/1997 1:36:00 AM
From: Allan F	Read Replies (4) \| Respond to of 148

If I may, Anax has said he is no longer short, just providing a point of view. I have been considering going long, and happen to appreciate seeing the other side of the story. Foremost why the secret customer, it seems obvious that would be the first question after reading the PR. Also, for Mike M, how does an initial order of $750K translate into $25M/year. The PR is a little vague, but one could argue the intial order is over two years. Finally, what is the production capacity (or more importantly the revenue capacity) of the "state-of-the-art facility in Phoenix?" Next what is GUMM's Price/Rev at say 90% capacity? What margins does GUMM have? How much capacity is currently sold? How far out? Right now the Market Cap is ~$70M. I think I remember reading the facility costing ~$25M. I don't think GUMM is worth much more than their plant, as such I would say it is priced kind of high. But then again I tried using that type of analysis with ZOLT back when it was $25. I guess right now it comes down to wether one believes in Gerry Kern or not. Waiting until next Q to see how he books the sale may be the safest play; however it is conceivable the window of oppurtunity will have long since passed. Any thoughts appreciated... -Allan