Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (3563)	12/26/2000 10:36:34 AM
From: rli123	Read Replies (2) \| Respond to of 5582

Dan --- I agree with just about everything I've heard you say, but Crest Mouthwash being a GUMM product -- I have trouble with that one. The common ingredient between the mouthwash and the gum is not a very strong basis on which to conclude that GUMM will be getting into the mouthwash business. They don't have ANY equipment/facilities to do mouthwash (liquid storage, blending and packaging) --- and lots of P&G contractors around the country are already set up for liquid storage, blending and packaging. (this absence of liquid storage/blending/packaging capability -- while many other contractors have it -- is the exact opposite of GUMM's position in gum-making --- they have equipment that almost NOBODY else has!) I think the Crest gum trademark is a real find! While it is further indication of P&G's intent to go commercial with oral-care gum, it is by no means conclusive. They probably file the trademark registrations at the ealiest hint that they might have a marketable product -- well in advance of the final decision to take the product to market. I have a great deal of difficulty understanding how an intelligent person could miss the significance of the P&G-GUMM relationship: P&G is clearly interested in having GUMM manufacture Crest Gum. They've given GUMM cash under the pretense of research and development, but my bet is that it is, in reality, cash to be used to finance the expansion of GUMM's manufacturing capacity to make Crest Gum. I may be wrong --- maybe P&G is looking for a Crest Gum that is unlike anything else on the market -- and this new product requires extensive R&D. Maybe. But my bet is on the first explanation. rli