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

To: Impristine who wrote (83)	1/29/1999 2:18:00 AM
From: Bengalus	Respond to of 133

Next, let's look at the medical testimonials, set up as "some specific medical and scientific opinions concerning ZicamTM:" <<It makes sense to offer protection where it is needed. Since colds can lead to so many secondary complications, this product could be of major significance for persons with chest and ear problems. This could be a Godsend for asthmatics." Murray Grossan, M.D. Ear, Nose and Throat Specialist Los Angeles, CA>> Clearly, Dr. Grossan has no first hand experience with Zicam. << "I agree that ZicamTM could potentially be a significant improvement over previous zinc-containing formulations, thereby representing a valuable addition to our otherwise very limited armamentarium for treating colds." Richard L. Lubman, M.D. Pulmonary Medicine Los Angeles, CA>> He says this based on what? He doesn't say. << "The nasal mucosa is an excellent route for drug delivery without systemic side effects, especially when treating conditions that originate in the nasal cavity, such as the common cold." Fariba Ghodsian, Ph.D. Drug Delivery Systems Expert Los Angeles, CA>> Sure, but this has nothing to do with Zicam. It's sort of like Gel Tech's press release, which mainly talks up the fact that lots of people get colds. This is the kind of "Big Picture" hype that you often see when someone's trying to run a stock up. cont.

To: Impristine who wrote (83)	1/29/1999 2:43:00 AM
From: Bengalus	Respond to of 133

Finally, let's take a look at GUMM's financials. sec.gov FY97 Net sales $3.116 million Net income ($3.388 million) FY96 Net sales $3.776 million Net income ($5.398 million) So for the last two years, the company's lost more money than it's taken in in REVENUES. You don't often see that for a non-development stage outfit. And it's not like this firm has ever had any glory days. What about in 1998? sec.gov 9 months to September: Net sales $3.6 million Net income ($4.4 million) EPS ($0.70) Q3 Net sales $1.3 million Net income ($0.6 million) EPS ($0.09) Even without the increased R&D, the company has operated at a loss. How about GUMM's financial resources? As of September: Cash $1.78 million Restricted Cash: $0.16 million Total Current Assets: $4.78 million Total Current Liabilities: $1.2 million Long-term Debt: $2.58 million Shareholder Equity: $4.67 million Market Cap at $13 7/16......$92 million If you want to know how big a joke this is, let's compare GUMM to Quigley (Nasdaq: QGLY), which at least has some real published science to support its claims for Cold-Eeze. Plus, it's got a very strong brand. Plus, it's got substantial and profitable sales. I'm not telling you to buy Quigley, because the company has numerous problems, but the comparison could hardly be more appropriate. Nine months FY98 through Sept: Net sales: $19.3 million Net income: 4.3 million EPS: $0.28 Cash: $26.7 million TCA: $49.2 million TCL: $3.6 million No long-term debt Shareholder equity: $46.3 million Market Cap at $5 1/4...$78.8 million I don't yet have a position in GUMM, but I'll probably short it. If you own this stock, you're speculating and you should be prepared to see the stock drop to the mid-single digits. All information from this series of posts can be confirmed by going to GUMM's public filings with the SEC or to Gel Tech's website. Cheers.

To: Impristine who wrote (83)	1/29/1999 2:53:00 AM
From: Bengalus	Read Replies (1) \| Respond to of 133

For perspective on GunnAllen, see this May 7, 1997 press release. At the time, GUMM was trading at just over $9 1/2. Over the ensuing months, the stock rose to an all-time high of $16 9/16, then fell back into the mid single digits. Here's month by month trading history: 04/30/97... 1,743,700 ... 10 ... 7 1/2 ... 9 9/16 05/30/97... 1,481,800... 12 ... 9 1/2 ... 11 3/16 06/30/97... 2,030,500... 11 7/8... 9 3/8... 11 1/4 07/31/97... 2,846,000... 14 11/16... 11 1/8... 13 3/4 08/29/97... 2,592,000... 16 9/16... 13 1/16... 13 3/16 09/30/97... 2,025,800... 13 7/16... 10 1/4 ... 11 1/8 10/31/97... 1,452,000... 12 ... 7 1/2 ... 9 5/8 11/28/97... 734,800... 11 1/2... 9 7/16 ... 9 15/16 12/31/97... 1,034,900... 10 5/16 ... 6 1/8... 6 3/4 01/30/98... 1,832,200... 7 3/4... 4 1/4 ... 5 1/2 02/27/98... 1,631,500... 7 5/8 ... 4 1/2 ... 6 3/4 03/31/98 ... 875,800... 7 ... 4 3/4... 6 1/4 04/30/98... 1,303,400... 6 5/16... 5 1/4... 6 05/29/98... 1,971,400 ... 6 1/2... 4 3/4 ... 5 3/4 06/30/98 ... 1,832,000... 7 3/4... 4 3/4 ... 7 1/2 07/31/98... 2,140,100... 12 3/8 ... 7 1/8 ... 8 1/8 08/31/98... 1,264,200... 9 1/2 ... 7 3/16... 7 1/2 09/30/98... 1,017,800 ... 9 ... 7 1/8... 7 1/2 10/30/98... 1,215,600... 7 5/8... 5... 7 1/8 11/30/98... 1,462,000... 8 3/8 ... 6 3/8... 6 3/4 12/31/98... 1,015,800... 7 3/4... 6 1/4 ... 7 11/16 BW0057 MAY 07,1997 TAMPA, Fla., May 13 /PRNewswire/ -- GunnAllen Financial reiterates its Strong Speculative Buy rating on GumTech International (OTC Bulletin Board: GUMM) based on continued successful implementation of corporate turnaround strategy. GumTech's first year agreement with CigArrest is for 3 million units; this order also significantly increases GumTech's revenue for the year. GumTech announced that they have been selected as the exclusive worldwide manufacturer of a new anti-smoking chewing gum. This chewing gum will be produced at GumTech's state-of-the-art manufacturing facility and is based on the CigArrest smoking cessation tablet, and will be produced for MDR/Transmedia, creators of the original CigArrest tablet. Under this new agreement, GumTech will produce and co-distribute CigArrest through its worldwide sales network. GumTech's products are in more than 80% of the large drug store chains and have distribution in Japan, Korea, Russia, Great Britain, Scandinavia, Eastern Europe and the Pacific Rim. GumTech's new dental hygiene gum, Chew Bright, was recently written up in F-D-C Reports "The Rose Sheet," a weekly publication for industry executives. Additionally, a new advertising campaign recently began which updates GumTech product's packaging and image. GumTech is reintroducing ChromaTrim and Citrus Slim products as well as producing VitaACES and Chew and Soothe zinc gums. GunnAllen Financial reiterates its coverage of GumTech International with a strong speculative buy. As with all smaller companies, GumTech has some risk, but the company also has significant strengths and is participating in a large and wide open market. GumTech faces factors which could have a significant negative impact on their business, including general economic and business conditions, rival gum manufacturers pricing and marketing efforts, timing of product introductions, inventory obsolescence due to consumer demand shifts, availability of third party materials at reasonable prices, and litigation resulting from product liability and consumer issues. GumTech's management team is experienced and qualified to take the company from this start-up phase to potentially become a large and profitable company. Management is delivering on their business plan of developing distribution, expanding markets, entering new markets, and developing innovative products. SOURCE GunnAllen Financial, Inc. CO: GunnAllen Financial ST: Florida IN: HEA SU: ECO 05/13/97 11:16 EDT prnewswire.com