Tootsie Roll Update

Yesterday, Tootsie Roll reported first quarter net income of $6.45 million, down from $9.81 million a year earlier. Sales declined 3% to $90.3 million from $92.9 million a year earlier. The company sights lower sales volume and higher input costs. This is what I had discussed in the earlier write up. Tootsie Roll will suffer from higher commodity costs in the short-term.
I have re-worked my DCF valuation assuming that 2008 and 2009 North American sales are flat, and that International sales are the same as previously modeled with an increase in Cost of Goods Sold, which will take into account the higher input costs.
Using these new assumptions, I have calculated a fair value of $30.79 for Tootsie Roll, which is only about 56 cents less than my previous valuation. Tootsie Roll closed yesterday at $24.41, which is about 21% less than my calculated fair value. I would still look to buy this stock on any $2 pullback, which would put the stock about 27% under my valuation.
I still believe in the strong management team, and I still enjoy the stock and cash dividends that Tootsie Roll pays out.