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Good points, Howard. One thing they should not do is buy back stock. That's worse than a dividend because you don't get any cash unless it makes the shares more valuable and you then sell them. That's obviously the idea of it, but you can see it hasn't worked that way for LWAY. All they did is buy their shares back at a higher price than they are now worth which makes the company less valuable.

I suppose the idea of divesting some of the family's shares is not only a no-win, if I were one of them I'd think it very distasteful.

Here is an important point that I've mentioned before; slotting is a fools game. All the major food manufacturers play it, but it is just a transfer of profits directly to the retailer. I don't like that LWAY pays slotting now, but I do like that they take that expense (and spoiled product credits) and put it in cost of sales. That is a very brave thing for management to do, and it no doubt has a profound effect on their net margins. I don't think other companies account for it that way...more likely marketing sales and expense (because "bribery" isn't a GAAP category). Give management some real love for that honesty.

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