Chester,
<<I've got the feeling that Gerald Kern's performance is looked upon as poor by the board of directors. >>
<<Maybe it was the brocolli and seaweed flavored gum. :)>>(cute)
I think it is probable that someone else has been carrying the load, myself...Never did like Mr Kern, but had high hopes that his caustic personality was offset by valuable qualities elsewhere within the corporate structure....It would appear that he may not be delivering...or perhaps he promised too much too soon...Lest you consider this capitulation, it is anything but....there is plenty going on and I think Santa is going to deliver handsomely in '98....
GUMM is a research company as well as a manufacturer. I think Mr Kern's lack of experience in the research arena may have led to his promising too soon (if not too much )...
I spent 30 minutes on the phone with one of the company's founders yesterday, probably the "key man" at GUMM...(not Mr Kern)...These brand products are taken through three phases in the research and development...They are in that third phase for several fortune 1000 companies....While there is no guarantee that any products will succesfully negotiate the third and final phase, all have cleared the 2d hurdle (with the possible exception of the broccoli and seaweed). The company appears delighted with both the progress and prospect of the research and product development to date. It is also apparent that the client companies have literally saved a couple years of developmental research thru this process!!
Brand manufacturing has some distinct advantages in that GUMM relies on the marketing muscle of the client corporation....who, by the way, funds the lion's share of the research....Products which pass the litmus test will, therefore, offer huge leverage once the manufacturing process begins, and for GUMM, almost certain success!
There are disadvantages to brand manufacturing too. Not the least of which is the desire of the client companies to maintain tight security, not only from their competitors, but also don't want to advertise (to their clients) their reliance on another manufacturer.... This silence thus allows the "doubting Thomases" to have their way with the stock price until such time as real product revenue materializes. The problem for the shortmungers is to not get caught short when the merry-go-down (sic) stops....
I am confident that the pipeline is real and eminent...if not this quarter, then next...and when it does, I want to be long, not short! I've got time....
Regards,
Mike |
