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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 466  
Subject: LWAY Q3 Date: 11/14/2012 5:40 PM
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http://finance.yahoo.com/news/lifeway-foods-announces-result...

...Total consolidated net sales increased 16% or $2.9 million to $20.6 million during the three-month period ended September 30, 2012 from $17.7 million during the same three-month period in 2011. Net sales are recorded as gross sales less promotional activities such as slotting fees paid, couponing, spoilage and promotional allowances as well as early payment terms given to customers....
The Company had $2.4 million in cash and cash equivalents as of September 30, 2012 compared to a $0.86 million at September 30, 2011. Total stockholder's equity was $38.4 million as of September 30, 2012, which is an increase of $2.6 million when compared to September 30, 2011...


Some good stuff here. Milk decrease fueled alot of it, again. But sales are strong. I still hold a position here, waiting for a bounce to maybe then unload. But good to see sales do continue to grow and balance sheet is strong...

Howard
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Author: leaderoftheback Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 421 of 466
Subject: Re: LWAY Q3 Date: 11/15/2012 8:01 AM
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Hi Howard-
#1- If I were holding LWAY, I would not be in any rush to sell it. I have not had a chance to look, but #2- I've see quite a few new LWAY items on shelves in my area. That is new. That would reflect on top line growth. #3- dairy prices are decidedly not down. I've only just read that in your post, so will swing over to the LWAY news when I get some time, try to figure why they would say that (and what it means for the future).

Takeaway- new products = top line growth. Will consumers buy them time after time? Don't know. However, the way LWAY accounts for supermarket business (subtracting shrink and slotting, etc.) is very conservative, wise, and unusual.

More later.

-Randy

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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: 422 of 466
Subject: Re: LWAY Q3 Date: 11/15/2012 1:40 PM
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Hi Randy,
Thanks for chiming in. I am not in a rush to sell it. I sold some at 11 and have been patiently holding my balance. I still like this company and the product...
I thought you'd like how they account for the supermarket business. You've mentioned that quite a few times before, which is why I quoted it.

I haven't seen any new products myself, but am very interested in what you see, now. I'm still waiting to see the fozen kefir, and it looks like it's selling decently. I think they said $700k in sales?

Maybe I interpreted the milk price comment wrong. Here it is:
Gross profit for the third quarter of 2012 increased 18% to $7.5 million, compared to $6.3 million in the third quarter of the prior year. The Company's gross profit margin was 33% in the third quarter, which was approximately the same in the third quarter of 2011. This was primarily attributable to a 20% decrease in the cost of conventional milk, the Company's largest raw material, partially offset by a 10% increase in the cost of organic milk.

So gross profit went up significantly, but margins remained the same. Maybe that was supposed to say "20% increase"? But if they had a quarter like this, with milk prices on the rise, I'm really intrigued as to what's changed. They've been living and dying on raw milk costs all this time.

Howard

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Author: TMFDitty Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 423 of 466
Subject: Re: LWAY Q3 Date: 11/16/2012 9:36 AM
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I clock Lifeway at $7M annualized free cash flow now. That's a P/FCF ratio of 20.

If this FCF is sustainable, and if growable at the 25% rate Wall Street is projecting, Lifeway looks safe to buy again.

TMFDitty

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Author: leaderoftheback Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 424 of 466
Subject: Re: LWAY Q3 Date: 11/16/2012 7:36 PM
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Hi Howard- visit whatever stores near you that have the most comprehensive natural foods sections. It looks like any business that works with UNFI will have the new items available.

What part of the world do you live in?

-Randy

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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: 425 of 466
Subject: Re: LWAY Q3 Date: 11/21/2012 10:28 AM
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Randy,
I live in Mt. Pleasant, SC. I shop mainly at Harris Teeter. There's also a close Publix I like.

I might need to to Whole Foods to find it...

Howard

p.s. What was your take on their comment about milk prices?

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