At first I was going to say what do you mean by up 2 7/16 then I saw the high for the day at 11 7/16. I hope that everyone has been doing their homework on this one. This is a phenomenal company with incredible potential, however it isn't going to go straight to the moon right now. I will be overjoyed with a consistant growth rate of 50 to 60% for the next several years. This isn't to say that LWAY won't do better. I see no limits to their growth other than working capital and the CEO's dislike of taking on debt. With LWAY's high net profit margin they have been consistantly generating high cash flows from operations so I feel they can maintain a pretty high growth rate. Consistant high growth will earn this company a high P/E.
Let's review the last 3 years of net income growth. 1994 had +113%, 1995 had +104%, 1996 had +40%, the 6 months of 1997 had +31%. Now with the new facility and several new products I expect the numbers to move back up higher.
Don't get me wrong, I think that recently alot of people have been buying LWAY on greed or panic, they might think they are going to miss this boat. G.C. had the same thoughts back on post #43 when the price was a mere $5.80. I have mentioned many times that I think they may have a flat 3rd quarter, maybe there are people who know differently and are buying. I never tell anyone when to buy or at what price, I simply give out information and some estimates to help others to understand the company a little better. It is my personal opinion that sometime later next year we will look back at $10 a share from a more lofty vantage point. Whether to buy at these levels is up to the individual based on his research and predictions. I also had a temporary 3 bagger in LWAY today. As Mr. Peter Lynch says " buy stocks of companies in their 3rd inning because between the 3rd and 7th innings is where the 50 baggers are made." It's the top of the 3rd in Skokie Illinois right now. It is very gratifying for me, ( and profitable ), to see this stock, and more importantly, its company do what my research has told me so far. For those of us with the patience to hold LWAY for the next several years, we haven't seen anything yet.
I hope everyone uses caution when buying stock.
I must say it has been very exciting recently with 4 consecutive record high closes.
Good luck,
Mark |
