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Biotech / Medical : GUMM - Eliminate the Common Cold
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To: Mad2 who wrote (817)8/29/1999 2:11:00 PM
From: DanZ  Read Replies (1) of 5582
 
Mad2,

Are you are suggesting that GumTech might have a problem meeting growing demand for their gum products because of a shortage of raw materials? Wrigley and GumTech use some of the same raw materials and Wrigley's sales exceeded $2 billion in 1998. Their cost of goods sold was $848 million and they didn't report any shortages that I know of. Even if they did note a shortage, they still managed to buy about $848 million worth of raw materials, much of which was used to make gum.

Even if GumTech reached full capacity of $100 million next year (I'm not suggesting that they will), the amount of raw materials that they would use would be minuscule compared to the amount that Wrigley uses. Which particular raw material do you think will present problems due to long lead times or shortages? Some things are worth worrying about, and others are so unlikely to occur that you're more likely to be struck by lightening. This latest issue of yours falls into the latter category.

Dan
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