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Biotech / Medical : Gum Tech (GUMM) -- Ignore unavailable to you. Want to Upgrade?

To: out_of_the_loop who wrote (6)	1/21/1999 1:42:00 PM
From: Bo Didley	Read Replies (3) \| Respond to of 133

GUMM --- STRONG BUY RATING -- $24 We are reiterating our Buy rating on GumTech International with a FY 1999 price objective of $24. This price objective is based on sales estimates of $23.5 million and $56.1 million for FY1999 and FY2000, respectively. Based on our sales estimates, GumTech could post per share earnings of $.47 for FY1999 and $1.64 for FY2000. We continue to de-emphasize Q3 and Q4 operating results, however, based on the infancy of new product lines including Breath Asure and Ranir, and to some extent the dental gum market, while maintaining a bullish longer-term outlook. Shipments of these new gums into distribution channels have commenced, and primary indications point to strong demand for both products. We believe that Breath Asure could capture 8.9% of the $390 million dental gum market by FY2000, while Ranir could capture as much as 7.1%. During this period we are confident that at least one, if not several, branded oral care companies will be participating in the market for dental gums. Since the FDA apparently views plaque as a disease, and any products claiming to reduce plaque are considered to be drugs, we view GumTech's sole position as a U.S. gum manufacturing facility that currently follows the Food and Drug Administration's "drug Good Manufacturing Practices" as a clear competitive advantage in the dental gum market. Although we decline to cite a definitive time frame, GumTech should commence domestic and international distribution of nicotine (drug) containing gums, as well as further penetrate the market for diet aiding gums, by FY 2000. GunnAllen Financial Jay Gunn 1-800-713-4046 his long term clients own over 4 million shares and they have no intention to sell until the company gets bought out. (Talk to him about the buyout price of GUMM) bo

To: out_of_the_loop who wrote (6)	1/22/1999 11:42:00 PM
From: Mike M	Read Replies (1) \| Respond to of 133

Howard- I think Gumtech uses the term "sublingual adsorption" and believe it has to do with absorption via the blood vessels in the mouth....Not only is it faster into the blood stream, but more effective as it is not neutralized by the stomach acids....or, that is my layman's understanding..... As can be seen from the old thread, I have owned this stock for a couple years now and my patience is finally paying off. The promise of this company is extraordinary and possible uses are unimaginable... I have visited the plant and spent several hours with Gary Kehoe and his very capable officers.... Gary Kehoe is the key...He has great integrity and considerable knowledge and experience in his field....Noone knows gum better than he does...Few understand the business of neutraceuticals as well....His energy is considerable as well and he has a long term approach. The company has had a few difficulties along the way....They hired a carnival barker to run things before turning it over to Gary and paid quite a price for that....(after a run in with Kern, I almost sold the stock, until I called the company and talked to Gary. I realized that the key man was Gary and not Kern.) They spurned Smithkline in order to someday compete with them in the nicotine gum business and had their heads handed to them when they tried to roll out the homeopathic "Cigarrest" product....But, for each setback they became stronger and when they named Gary as CEO I knew they were going to succeed and flourish....... This company has great potential as well as current value....There are any number of products that may be more efficiently administered by gum than just about anything.... (Inhale may also prove to be a worthy competitor...) Gum has found it necessary, after an unfair fight with Smithkline, to bank on private label business until cash flow allows room for advertisement of their own products........It would seem only a matter of time before a fortune 500 company signs on to jointly develop products and take advantage of GUMM's research and manufacturing capacity....At that point sales will explode and cash flow will provide seed money to improve product mixture resulting in improved profit margins.... I am in no hurry for Watson or anyone else to buy them out....I believe that time would result in greater potential than a $30-35 price target. But, I must admit, if they are bought out, my complaint would be muted all the way to the bank..... :o)) Mike