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Author: hsmith1415 Big red star, 1000 posts Old School Fool Global Fool Most Active, Foolanthropy 2013 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 469  
Subject: Re: LWAY Divi Date: 5/16/2012 12:25 PM
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I don't doubt that's alot of the motive at all. But what should they do? They seem to be in a tough position as seen by stockholders then.

So they start a company and retain a ton of insider ownership. They grow the company, and want to monetize some of it. If they sell their shares, stockholders would scream 'insider selling. Something must be bad'. If they declare divi's, stockholders scream 'they are grabbing all the cash'.

So what should they do? As I mentioned, I wonder if this will hinder the growth, and that concerns me. But I also feel like I should come to their defense somewhat....

What choice do they have at this point, to be able to monetize their ownership?

I'm not a huge fan anymore, either, btw. I can't be heavily invested in a company that has little control over their profitability, so I've moved mostly out. I'll probably sell the rest if the market gives it more of a boost now that milk prices will be down and make profits look good...yesterday's announcement of expansion with Target has already given the stock a nice boost. Their earnings report came out, too...

http://finance.yahoo.com/news/lifeway-foods-announces-result...


Howard
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