GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: DanZ who wrote (3919)	8/9/2001 10:50:15 AM
From: rli123	of 5582

Dan --- regarding the value of their equipment --- $5 million --- my understanding is that it was greatly understated on the GUMM books. Gary Kehoe did some very interesting deals to obtain used but servicable equipment --- some from an American company that gave up on a venture in China --- and some from barter deals. And he used salaried workers to do the installation (typically a significant part of the total installed cost). I don't know if he expensed their salaries, or capitalized them. Regardless, he was putting together a respectable first-class manufacturing facility on a small budget. Unfortunately, Gary wasn't as successful on the sales side. As best I can tell, Wrigley brings a sales force, distribution and financial muscle to the P&G deal. Their sales force will rapidly place the Crest gum at checkout counters across the country --- something GUMM could never dream of doing. But the Phoenix manufacturing facility will produce the product --- something that Gary can take credit for. I'm actually happy for Gary --- I think he's much happier making gum than selling it. Now he's got his work cut out for him --- he'll have to crank out the gum in large volume to keep up with the Wrigley and P&G sales forces! rli

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