Lifeway (LWAY)

[zsvq1p]

Now About the future? Who can predict?

Facts..
- Up 3.6% in revs
- November 29, 2007 Lifeway Foods Announces Full Product Line Price Increase increase of approximately 10-15%... This price increase will go into effect in December 2007

Did they get the increase?
- 4th revs up 3.6% to $10,170,000
- 3Q revs... Some GIff math
Assumption they got it mid December with typical growth 1%

1st Oct and Nov = $9,817,478/3 months = $3,272,492.67 x 1% growth x (oct-nov) months = $6,610,435.19

2nd December ($3,272,492.67/2= $1,636,246.33 x 1% = $1,652,608.80 x .10% = $1,817,869.68 + $1,652,608.80 = $3,470,478.47

Oct - Nov $6,610,435.19 + Dec $3,470,478.47 = $10,080,913
Compare: $10,170,000 actual vs $10,080,913

One can conclude they got the increase... In fact, I did the same with 2% growth... This is what I got... $10,180,724.69

I say the analyst are close right now after last Q.... all missed on food raw material... price went up too fast to know.

With a few assumptions... Got the 10% price increase... 2% growth... same % SG&A....

With this.. today trading at forward 30.. I guess the analyst are pretty close...

I think we trade a little ahead given the cost of dairy raws too.