Excerpt from our One-Page Annotated News Summary:
Summary: Insider buying continues at Diamond Foods, a nut processor based in Stockton, California, which went public last year at $17/share. CEO Michael Mendes and two directors added 14,625 shares last week at an average price of $14.24. Since the IPO Mendes has bought around $217,000 worth of shares and paid as much as $20.70 in January. Mendes says he thinks Diamond's shares are "very much undervalued, given what we think the performance of the company will be in the coming years." David Coleman, editor of Vickers Weekly Insider report comments, "Typically, when you see more insiders buying more stock as the price deteriorates, that's a relatively reliable indicator that the stock is oversold."
Related links: Full article • Diamond Foods: Q406 and FY06 Earnings Release • Diamond Foods: Investor relations • Yahoo! Finance: DMND Insider Transactions • Insider Trading -- How it Works and Some Companies to Watch
Potentially impacted stocks and ETFs: A BusinessWeek article (see excerpt) from January mentions DMND is "a distant No. 2 in snack nuts to Kraft Foods' (KFT) Planter's line..."
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