Lifeway (LWAY)

[zsvq1p]

So you call me simi-stupid...
I've been called that before.. LOL ... but shorting is valid trading practice? I will quit talking about shorting here...

It seems these food companies cannot just raise price fast enough to recover COGS... They are so dependant on on the retailer. The retail buyers are saying Price increase? fine, you raise my price... don't send me your product.

"Total cost of goods sold as a percentage of sales for Lifeway Foods was approximately 72% during the third quarter 2007, compared to about 62% during the same period in 2006. The increase was primarily attributable to the cost of milk, Lifeway’s largest cost of goods sold component, which was approximately 110% higher in the third quarter 2007 compared to the same period in 2006. The price of milk in the month of September was the highest ever recorded, and we have since seen the price slightly drop during the month of October, 2007, however, we can make no assurances that the price of milk will continue to decline from its September 2007 record highs. In addition, on July 1, 2007 the minimum wage in Illinois increased to $7.50 per hour from $6.50 per hour, which also had a negative impact our gross margins"


Here is a very good web site to track milk price... Kefir falls under the Class II
http://future.aae.wisc.edu/data/monthly_values/by_area/2?area=US&tab=prices&grid=true