Update on my GUMM holding.
I haven't had much to say about GUMM lately, but I think that tonight's news has significant implications to the company's future and its stock price. This stock has based for well over a year, and tonight's news could be the catalyst that begins a sustainable rally.
First the news:
Gum Tech International's Zicam Cold Remedy to Be The Subject of Upcoming Scientific Presentation
PHOENIX, March 13 /PRNewswire-FirstCall/ -- Gum Tech International Inc. (Nasdaq: GUMM - news), developer and distributor of Zicam® Cold Remedy and Zicam® Allergy Relief, announced today that the cold remedy will be the subject of an upcoming scientific presentation by Sherif Beniameen Mossad, M.D., F.A.C.P., F.I.D.S.A. at the 10th International Congress of Infectious Diseases (ICID) taking place in Singapore this week.
During a poster session at the conference, Dr. Mossad, of the Department of Infectious Diseases at the Cleveland Clinic Foundation, will present the results of a new clinical study designed to specifically measure the effects of a zincum gluconicum nasal gel (Zicam Cold Remedy) on patients identified as having rhinovirus. The study results are currently undergoing peer review as a preliminary to possible publication in a professional journal.
The study was funded by Gum Tech International, Inc.
biz.yahoo.com
There are several reasons that I think this is significant.
1. I doubt if Dr. Mossad would present at ICID if the study results weren't positive.
2. A previous double blind placebo controlled study conducted by Dr. Michael Hirt concluded that Zicam users got rid of their colds three times faster than a placebo group. The study results are available online at zicam.com. Click on Research, ENT Journal Study. Some people in the medical community criticized Dr. Hirt's study because he didn't verify through blood work or nasal swabs that the subjects actually had a rhinovirus. Since Dr. Mossad apparently verified that the subjects in his study had a rhinovirus, this new study should squelch this particular criticism with Dr. Hirt's study.
3. In a 2/28/02 press release, Gum Tech said that they are working on a new strategic alliance and will expand distribution channels domestically and abroad. I have believed for over a year that Gum Tech would form an important alliance with a large company to jointly market Zicam. Obviously a potential partner would want proof that Zicam works per the company's claims, and this new study should provide that proof, while at the same time refuting the criticism with Dr. Hirt's study and increasing credibility in the scientific and medical community.
4. On 2/28/2002, Gum Tech said that they intend to "Increase the presence of the company in the financial marketplace and pursue aggressive expansion of the company's shareholder base with the advice of an investor relations firm recently retained by the company." I am fairly certain that the IR firm they are referring to is Christensen & Associates, christensenassoc.com . I believe that a positive study presented at ICID will make it very easy for C & A to interest new investors in GUMM. |
