Re: Two promising equities!
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It may very well happen as you say. But Lifeway is no stereotypical russian company - in fact, judging by their marketing (radio ads, packaging), which seem very 'americanized', I'd say they are adapting to our way of business really well. In food, packaging is almost as important as taste, and they have that part of the business nailed down. Their ProBugs product seems to be selling well, targeted at kids, and so are their flavored kefirs.
As far as replicating kefir, other companies can certainly do that - but kefir isn't a product like milk. I've tasted other kefirs in the Chicagoland area and imo they're not nearly as good as Lifeway's. They're in the same price range, and have worse packaging/marketing.
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Don't get me wrong, I'd certainly be long the company for the medium term vs. the S&P or whatever other benchmark. The short is for the long-term. All the things I mentioned are not going to come out until at least 1-2, probably 2-3 years, provided that kefir as a product does take off -- and in the meantime, the stock could go to 100 if right now they do indeed have the best tasting and marketed product. If you believe thats the case, go long for now.
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