Dave, Please explain why it won't even come close to a 30 bagger. You emphasize un forseen difficulties, new factory glitches, new training costs, ineffeciencies etc. What if your unforseeable curve balls don't materialize? What if Mr Smolyansky hits the nail on the head with 15 times new plant capacity from the existing one in 6 years as quoted. That's about $80M in sales. Conservative 11% Net Profit,
(LWAY has produced higher even before the new highly automated facility came on line). Shares have a nil chance of major dilution. Wow, $8,800,000 N.I. / 3,800,000 shares = $2.31 earnings X a paltry P/E 50 which it now holds (before the explosive growth which will happen, is happening, in 1998) = $115 sh. The 30 bagger prediction was at $4 sh. so your assumption of a 30 bagger as being REDICULOUS is
correct - but I'll take the 28.75 bagger as it works out.
Good luck on finding a micro cap with a CEO at the helm who runs a tighter ship than Mike Smolyansky. Have you been in verbal touch with him? I have, and every time I listen to him the story portrayed has materialized. In fact he surprises the heck out of me with the steady progress of LWAY. Crunch the numbers, talk to the man, dream a little. Health food products are hot. Look at the sales and expansion of Whole Foods and Wild Oats.
Steve |
