Lifeway Foods, Inc.: Finders, kefirs

Crystal D. Vogt | Nov 01, 2007 11:00am EDT | Comment

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Lifeway Foods, Inc. (Nasdaq: LWAY)
Morton Grove, IL 60053
http://www.lifeway.net/

52-week low / high: $7.45 / $20.75
Shares Outstanding: 16.82 million
Market Capitalization: $260.09 million

The cultured investor looking to up his portfolio pedigree would be wise to watch Lifeway Foods, Inc. (Nasdaq: LWAY), a producer of health food products based on kefir, an ethnic Russian dairy drink containing probiotic cultures.

Unlike yogurt, which contains two to three cultures, kefir contains 10 live and active cultures and is touted by the company as offering more nutritional benefits than its sister swill.

The company's buffet of beverages offered extends into various drinkable yogurts sold under the La Fruta brand (targeted at the Hispanic market), Tuscan brand and BasicsPlus, a dairy-based dietary supplement beverage said to support the immune system. Lifeway also produces soy-based kefir products under the SoyTreat trademark as well as cheeses and spreads under the Farmer Cheese, Sweet Kiss and Cream Cheese Gourmet brands.

Aside from selling nationwide to supermarkets, grocery stores, gourmet shops, delicatessens and convenience stores, Lifeway's new product introductions, and increase in distributors and acquisitions should continue to fuel the growing demand from America's health-concious.

Lifeway has positioned itself at the helm of the health food trend in the United States, with sales for the third quarter ended Sept. 30, 2007 increasing 32% to $9.8 million from $7.46 million during the same period a year ago. Kefir cultures and drinkable yogurt constitutes 60% of the company's sales, the remainder being cheese-based products.

Analysts are looking for 2007 sales of $39 million, 40% ahead of 2006 revenues and EPS of $0.26 versus $0.15 in 2006, a 73% improvement.

For more information on Lifeway, see Lifeway Foods: A corner on kefir, Aug.1, SmallCapInvestor.com.

Note: Lifeway Foods, Inc. (Nasdaq: LWAY) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Lifeway Foods displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.