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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: George Antoniou who wrote (41369)	5/21/1999 7:48:00 PM
From: Street Walker	Respond to of 120523

Something Strange was going on today with GUMM I watch it everyday on Level II. I mentioned 'OperationHardHat' posts over on Yahoo. He speaks with allusions, and they always come true. He has followed the company for many many years and has contacts. I trust his info. Sometimes we don't know what he's been talking about, until after the fact..when the news has been released and the stock is up in price. As far a stock to own, as Jenna stated, its in a unique sector. IF they get a generic nicorette contract, this will be huge. Later this fall, their common cold treatment, Zicam, will be turning out a profit. 4th quarter they lost 26 cents, 1st quarter they lost 8 cents, and I'm looking for them to finally be profitable by next 4th quarter. I am not trading this stock. I own it for the long term with hopes based on Zicam zicam.com and the money they will generate IF they get a nicrorette contract. To give you an idea, Smith Kline made $180 million last quarter alone on their nicorette gum. Gumm will be chewing into this market...they said its their number 1 priority. Their CEO is the most knowledgeable gum formulator in the world. All the major companies have tried to hire him, but he remains with GUMM. A man with a mission. The possible suitor for GUMM would WPI. They have the FDA approval for generic nicorette, but they don't have any way to mass produce it. And their approval is for only 6 months. They said they will have it on the shelves by summer. Either a contract or buyout would be the only way for them to do this. Erecting their own plant would take too long and be counter productive on a time scale given their limitation of 6 months free of competition with the generic. Another suitor would be SmithKline. SBH said they need more production of their gum for international distribution. Who would do this best? Also, GUMM could be a potential thorn in their side because there are just not many gum manufacturers, and GUMM is the only FDA approved manufacturer in the country, so competing companies with generic Nicorette would be coming to GUMM. Does SBH want competition? If not, the best way would be to buyout the manufacuturer, GUMM. But wait a minute...WPI wants them. A bidding war...maybe. For myself, I'm blowing no bubbles over a buyout that may not happen. I'm in it for the long term, and if they get bought out, that's fine with me. Sometimes, these little niche stocks don't always trade the technicals. They are more like sleeping giants that instantly awaken. If you already have shares, you're happy. Otherwise, its too late to get a piece. At the same time, you have to have a lot of patience while the giant is sleeping and that is difficult for some to do. They want a quick buck...but who doesn't? "operationhardhat" knows something. Based on his msgs, something big is in the works..either a buyout, or 5 big announcements. I would be a buyer of shares and hold for atleast the short term. Downside on this is very minimal. SW