Lifeway Foods, Inc. (NASDAQ:LWAY)

Lifeway doesn't often get as cheap as it is today, and usually bounces back. While profit margins are weak, the stock is selling for about 1x sales versus valuations closer to 2x sales for similar-but-larger businesses Danone and GIS.

Not a fan of yogurt or anything like it but I do like this company and the direction that it's headed.

This stock has taken a beating recently due to declining margins attributable to a significant increase in the cost of milk which is their primary ingredient. However, this is a company operating in a niche market that is set to expand as health concerns spread throughout the U.S. A couple reasons why I like this company,

1. They have virtually no competitors at this time, which gives them position to establish themselves as the market leader for their niche.

2. They've been investing heavily into PP&E which should benefit them in later quarters in terms of operations.

3. Finally, they've got decent distribution (Walmart, Wegmans, KR brand stores) and continue to expand into new markets such as the U.K. and Canada.

4. They know their customer and market. They specifically target health conscious women and market their brand to mothers using social media and television campaigns which I believe is an effective strategy for middle age women watching their weight.

As milk prices recede back to normal (and hopefully they learn to hedge milk prices) and as they continue to expand globally we should see their bottom line improve and this company grow to much much larger.