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Strategies & Market Trends : Z PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (2521)	2/1/1999 11:49:00 AM
From: DanZ	Read Replies (1) \| Respond to of 11568

GUMM. Bought 3,000 at 12 3/8. I own this in my personal account from last week but didn't post a Z buy because I wasn't sure if I was going to flip it or hold it. After doing a significant amount of research over the weekend, which can be found on various threads on SI, I have decided to hold my personal position in this company. My research revealed that there is no hocus pocus behind Zicam. A significant amount of research is being done on how common cold viruses interact with the ICAM-1 receptors in your nose, and many researchers are focusing their efforts on treatments in this area. Gum Tech just happened to get a product to market first and I'm convinced that it is not a hoax. As William O'Neil says, buy companies that have good technicals (making new highs on above average volume, good relative strength, etc...) and that has a new blockbuster product. If you look past the hype over Zicam, this is a turnaround story and the past fundamentals are not of much significance. The company's other business units are doing well. GUMM also manufactures and distributes Breath Asure Gum, among other well known brand names. The only analyst that I can find who follows GUMM, GunnAllen, estimates that the company will earn 87 cents next year and they have a price target of $24. The chart looks good as well but I'm not emphasizing it as much as the forward looking fundamenals on this trade. Dan PS: Thanks for doing the survey. The results were interesting.