Lifeway (LWAY)

[OldPro]

per last year filings - don't...

expect earnings and full year 10K until early April. They said they would have a conf. call - don't know if they'll provide guidance. the expansion was a doubling of production capacity that will allow them to transfer more operations to their headquarters outside of Chicago where margins are higher as well as meet future demand needs.

milk prices have moderated somewhat - but still high - LWAY needs their price increase to take hold and that should get profit back up where they get noticed. On a personal note - the Kefir in local health food store and local Country Market is selling very well based on observations of turnover in product - I stop in these stores once or twice a week just to check.

New distribution agreement in Colorado is all new and appears to be significant. Should be an immediate bump in revenue as new stores stock up - which should lead to a pretty positive outlook for Q1 08 if they choose to provide one.

Don't know much about the trading except did notice it in past 10Qs but not certain if is just an accounting term or what it actually refers to. The ananyst haven't cited it as an issue and it appears to be small - so I haven't paid much attention to it.

I'm pretty positive on LWAY and believe they are a possible target for buyout. think their organic growth can really accelerate going forward as market penentration is extremely low. Kefir is one of those things that it could get red hot and become a must try/have product with the right marketing, health study, or even if Oprah decides she likes it - lol.