Lifeway Foods, Inc. (NASDAQ:LWAY)

Tastylunch (29.89) Submitted: 5/18/2008 3:12:09 AM : Start Price: $12.15 LWAY Score: +11.12

"The Company is engaged in the manufacturing of probiotic, cultured, functional dairy and non-dairy health food products."

Sounds like products to me that won't sell well in a recessionary environment. Sounds more expensive than straight up milk. Also sounds like high risk products for health concerns related to contamination.

Bonus points? Lifeway made an enemy out of the FDA

"The FDA, in a complaint filed by the Department of Justice, alleges that Lifeway distributed cream cheese products with inadequate labels that did not disclose food allergies, trans fat levels and complete ingredient lists.

The complaint also said Lifeway did not produce adequate plans for the safety of its seafood operations and did not document that it monitored sanitation conditions."

http://www.fool.com/news/associated-press/2008/05/16/lifeway-foods-responds-to-fda-allegations.aspx

Dad always told me "Don't mess with the FEDS son, they'll shut you down". That has to hurt productivity/profitability. Can anyone say Q1 earnings miss?

Looking at this company's P/e, they are going to get whacked this summer.