Decent quarter. Still next to no one covering LWAY; only Howard from Taglich asked a few questions (Taglich is paid a monthly retainer from LWAY for coverage). A guy from Sidoti was also listening, but when it came to questions, he said his question had been already answered.
When Howard asked about another seven cent dividend, Eddie stated given available cash, another dividend is likely. With 16.36M shares outstanding, the cost of the div payment would be $1,145,200. Is this the BEST use of the company's cash? I'd think the cash would be better used for advertising. It appears that management is content on using social media and handing out samples at Oscar parties and South Beach etc.
Granted, I'm not a marketing expert, but I'd like to see LWAY target more consumers. I'm willing to bet that no one I would ask has ever heard of LWAY or kefir, but they are very aware of kefir's cousin: yogurt.
I do like the product extensions. Hopefully LWAY's global expansion will prove fruitful.
I continue to be amazed at the success that Chobani has and is experiencing. Kudos to its founder.
Chobani was founded in 2005, or twenty or so years AFTER lil LWAY. Of course, everyone was already familiar with yogurt when Chobani started to play, but few knew what Greek yogurt was. Kefir? As noted before, if you said "kefir" to several people, I imagine the result would be a confused look on their faces.
Hence my desire to spend the 7 cents a share on advertising that would introduce consumers to kefir.
(The real beneficiaries of the dividend are Mom, Julie and Ed)
I must say kudos also to Michael Smolyansky for creating a good business that now employs approx. 200 people. I do like some of LWAY's products. I just wish more consumers were aware of them; other than those who wholeheartedly embrace social media!