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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: gamesmistress who wrote (126)1/31/1999 10:23:00 PM
From: DanZ  Read Replies (2) of 5582
 
Gina,

There has been publicity in certain areas of the country for Zicam but it hasn't made a national news program yet that I'm aware of. The benefit of the story being on national news is to get people interested in the product as opposed to the stock. The stock price will take care of itself if the product sells.

As I'm sure you can imagine, it's going to take a few days to weeks to distribute the product nationwide. This is a big roll out and some of the companies have their own distribution centers. For example, Albertsons would have to receive the product at a central distribution center and ship it to their individual stores. I assume there is a lot of red tape involved in doing this so it won't happen overnight.

It is also possible that the accelerated announcement resulted in the inability to fill the channel nationwide. The announcement was just made public last Friday and it came three weeks earlier than the company planned. I can't see this having an effect on the stock because a week or two delay isn't going to make or break the success of the product. If investors believe that Zicam will increase GUMM's EPS, the stock will go up whether the product is in the store tomorrow or next week.

Ironically, I have a cold right now and wanted to see firsthand if Zicam works. Unfortunately I was unable to find it at my local Albertsons or Eckherds. I'm planning to call the company tomorrow to see if they will send me a bottle. I'll report back how it worked for me if I'm able to get some.

Dan
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