Lifeway Story

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LWAY -- USA Stock  

USD 5.30  0.20  3.64%

While this unique economic environment continues, Lifeway Foods may throw investors more surprises in two-three weeks. Why are we still confident in our hopes for a recovery. Lifeway Foods is now traded for 6.10. The entity has historical hype elasticity of 0.01. The average price elasticity to hype of competition is about 0.06. The firm is forecasted to increase in value after the next press release, with the price going to jump to 6.11. The current volatility of headline impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is forecasted to be 0.16%, whereas the daily expected return is now at 0.27%. Given the investment horizon of 30 days the next forecasted announcement will be in about 8 days.
Published over two weeks ago
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Is Lifeway Foods (NASDAQ:LWAY) gaining more confidence from investors?
This firm's average rating is Buy from 2 analysts.
We provide investment recommendation to complement the last-minute expert consensus on Lifeway Foods. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
The successful prediction of Lifeway Foods stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Lifeway Foods, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Lifeway Foods based on Lifeway Foods hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Lifeway Foods's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lifeway Foods's related companies.

Use Technical Analysis to project Lifeway expected Price

Lifeway Foods technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Lifeway Foods technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Lifeway Foods trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Lifeway utilizes its cash?

To perform a cash flow analysis of Lifeway Foods, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lifeway Foods is receiving and how much cash it distributes out in a given period. The Lifeway Foods cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lifeway Foods Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Lifeway Foods reported Net Cash Flow from Operations of 6.38 Million in 2020

Payment of 41 shares by Eric Hanson of Lifeway Foods subject to Rule 16b-3

Legal trades by Lifeway Foods insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lifeway insider trading alert for payment of common stock no par value by Eric Hanson, Chief Fin and Acctg Officer, on 6th of April 2021. This event was filed by Lifeway Foods Inc with SEC on 2021-04-06. Statement of changes in beneficial ownership - SEC Form 4. Eric Hanson currently serves as interim cfo, chief accounting officer of Lifeway Foods [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Lifeway Foods Indicators

The company reported the previous year's revenue of 99.61 M. Net Income was 4.01 M with profit before overhead, payroll, taxes, and interest of 25.3 M.
 2018 2019 2020 2021 (projected)
Share Based Compensation802 K838 K963.7 K821.72 K
Net Cash Flow from Operations2.42 M3.81 M3.43 M3.87 M

Cost of Revenue Breakdown

Lifeway Foods Cost of Revenue yearly trend continues to be fairly stable with very little volatility. Cost of Revenue is likely to outpace its year average in 2021. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Lifeway Foods Cost of Revenue is fairly stable at the moment as compared to the past year. Lifeway Foods reported Cost of Revenue of 82.24 Million in 2020
201490.1 Million
201588.7 Million
201688.85 Million
201788.2 Million
201877.49 Million
201971.51 Million
202082.24 Million
202184.77 Million

Lifeway Foods bad stories are not so bad

Lifeway Foods sortino ratio is up to -0.01.
As of the 25th of March, Lifeway Foods secures the Downside Deviation of 4.52, mean deviation of 2.7, and Risk Adjusted Performance of 0.0285. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lifeway Foods, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Lifeway Foods, which can be compared to its peers in the industry. Please verify Lifeway Foods semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Lifeway Foods is priced some-what accurately, providing market reflects its recent price of 6.1 per share. Given that Lifeway Foods has jensen alpha of 0.0042, we recommend you to check Lifeway Foods's last-minute market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Lifeway Foods

While some other entities in the packaged foods industry are either recovering or due for a correction, Lifeway may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither purchase new shares of Lifeway nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lifeway Foods.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Lifeway Foods. Please refer to our Terms of Use for any information regarding our disclosure principles.

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