Health Stock Short-Squeeze Opportunities
Lifeway Foods (LWAY) isn't a health stock in the traditional sense.
The $201 million company manufactures health food products, including cheeses, spreads and energy bars. Its flagship product is Kefir, a drinkable probiotic yogurt drink that promoted digestive health and comes in both dairy and soy varieties.
What makes this small stock stand out is its incredibly high short-interest ratio, a gauge of how long it would take for short sellers to cover their positions. Lifeway has a short ratio of 77.6 right now -- the higher the short ratio, the higher the potential profits when the shorts get squeezed -- which means it would take nearly 16 weeks of average trading volume for shorts to get out. That's a colossal short-squeeze opportunity.
And there's plenty going for this stock right now that makes shares worth taking a closer look at right now. In addition to making the Fortune Small Business list of fastest-growing companies for four straight years, Lifeway's business has already been deemed attractive to others in the industry. $32 billion yogurt giant Groupe Danone (DANOY) owns a 20% stake in Lifeway that it's been holding on to since 1999.While the company's products have traditionally been the domain of health food stores, a distribution deal penned in December gives Lifeway products shelf space at convenience store giant 7-Eleven in 275 stores in the Chicagoland area, with plans to expand to convenience chains nationally by mid 2010. That could be just the catalyst that this stock needs to trigger shorts to run for the hills -- and to rocket Lifeway shares in the process.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV