$UVFT, Garlic and Swine Flu
December 31st, 2009 at 10:41 am Posted by
On a number of occasions, The Dean has taught the CollegeStock Community that Swine Flu Frenzy could really get swine flu stocks, like $UVFT, moving. Oftentimes, the demand and appeal for a particular product can increase based on Fear and Perception. When these types of products, whether a naturally product like garlic, or man-made innovation and technology like $UVFT’s UV400 VIRAGUARD, that demand can dramatically affect the cost of a product and, of course, share value.
Coincidentally, or ingeniously enough (your choice), The Dean came across a USA Today article from earlier this morning, which discusses how garlic prices have exploded due to “flu fears.” It turns out that a similar trend occurred with turnips in 2003 because the Chinese saw the product as a “traditional remedy” to prevent the SARS virus. Now, it appears that “garlic has emerged as a swine flu fighter.”
Despite the Chinese government’s warnings to consumers about “the lack of scientific proof for garlic’s flu-killing powers,” people are afraid (FEAR) and are led to believe (PERCEPTION) that garlic will do the trick. In fact, this has created such a large demand that the price of garlic has increased 1000% since February 2009—surpassing gold and stocks as China’s “best-performing asset this year.”
What The Dean really finds interesting about this “rush” to buy garlic is that many people, like Zhao Wenjing, a nurse in Bejing, have only “heard some doctors [say] it could prevent H1N1.”
In the United States, preventative products and methods are typically tested and approved, giving people a sense of trust and belief. The Dean doesn’t think it’s much of a stretch to apply this garlic analogy to $UVFT and the company’s product, especially because it’s been “tested” in certified laboratories and “approved” by the FDA as a Class II medical device.
