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Non-Tech : LIFEWAY FOODS (LWAY) -- Ignore unavailable to you. Want to Upgrade?

To: mark cox who wrote (133)	2/2/1998 12:02:00 AM
From: mark cox	Respond to of 352

Hi, I was looking at the 3rd Qtr. 10Q 97 again and noticed something I missed before. I had already mentioned here that their Inventories had been built up to a level 45% greater than last year's level. If LWAY wasn't a growth company that would have been a warning sign of course, but we know that large growth lies ahead. What I hadn't noticed before was its comparison to Accounts Payable. Inventories increased by the amount of $209,623 or +45% over the previous year and Accounts Payable rose only $16,347 or 5% over the previous year. This shows that $193,276 or 92% of that increased Inventory has already been paid for. This lends support to what I said about LWAY being able to afford a high growth rate. I also computed LWAY's "financial leverage gain" for the year 1996. This figure is the amount of money LWAY earned on every dollar of debt they had, or how much money they made with the bank's money. They made a net profit of 9.3 cents on every dollar borrowed. This shows how well Mr. Smolyansky can use debt to make money. I will update this figure for 1997 when the 10K comes out as well as all of the other ratios and figures. I am hoping that the new 'medical foods' will be released this month. I can't get any specific information as to when they might be released. I know that the modified clinical trials are supposed to take approximately 2 months. 'Basics Plus' was launched on Dec 17, so if trials were started then...... Mark