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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: PaddyD who wrote (1981)12/27/1999 2:36:00 PM
From: Carl R.   of 5582
 
The way I see it there are three significant risks. These are:
1. The risk that the product doesn't work
2. The risk that they can't sell the product
3. The risk that bigger competitors will come in and crush them after they establish the market

By testing it, I can evaluate risk number 1. From my prior experiences sucking on Zinc tablets I am confident that Zinc does in fact affect the duration of cold symptoms. I also presume that a nasal application should work better than sucking on the tablets, and while squirting gel up your nose doesn't sound pleasant, neither is sucking on a zinc tablet. Anyway, if it works, it won't come as a surprise to me.

There seems to be some evidence that the product is selling. I will ask the pharmacist how well it is selling when I find some. Word of mouth should be good promotion, but eventually I suspect they need a $100 million ad campaign to stave off risk number 3. In my view the best alternative may be for a buy-out by a larger drug company who can really afford to promote the product.

I did take a small position in this stock this morning at 16.25. We'll see how it goes. I generally avoid stocks that are heavily shorted.

Carl
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