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As it struggles in its effort to become current with its periodic report filings with the SEC,...

  • Friday, October 5, 2012, 4:36 PM ET
    As it struggles in its effort to become current with its periodic report filings with the SEC, Diamond Foods (DMND) says it's received a determination letter from the Nasdaq stating that it's failure to file its annual 10-K for the year ended July 31, 2012 serves as an additional basis for the potential delisting of its shares.
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This news story has 7 comments:

  • I'm sorry, but remind me again, why do companies fail to file their financial report on time?
    5 Oct 2012, 04:50 PM Reply Like
  • They don't want to..can't believe their auditors!
    5 Oct 2012, 06:11 PM Reply Like
  • They have to restate their 2010 and 2011 financials. They are not going to release any quarterly or annual statements until those are restated given that the ending points of each of those statements become the starting points for the next ones.

    If they release their 2012 financials, they would have to restate that one as soon as they release their corrected 2010 and 2011 financials. As much as people want to beat them up over this, it is a legitimate reason. Why they are taking so long to restate their prior year financials is another question and a more legitimate one. This last year's financial statement isn't a problem but merely a consequence of the real problem upstream that they cannot get their restatements done for some reason.
    5 Oct 2012, 07:08 PM Reply Like
  • WalnutMan, agree with you, the question was really rhetorical. The reality is that they cannot agree with their auditor on a restatement that will be truthful enough to keep them happy and out of jail, yet lying enough to keep investors happy (and therefor keep the CEO and CFO employed.)

    This is always the reason for the delay.

    When companies fail to meet the reporting deadline, investors should dump, dump, dump. and dump some more. However, I would never short this situation, as one never knows the real cause or the extent of the coverup.
    6 Oct 2012, 10:48 AM Reply Like
  • Well, the new restatements shouldn't affect the CEO and CFO at all. They cover a time when Mendes and McNiel were running the show, so if they look good or bad, it shouldn't really reflect on Driscoll or Murphy.

    You have one hypothesis and it is plausable. Another equally plausible one would be that they found something else and that is causing a delay. A third possible reason could be that the audit is done but they don't want to release it until they receive their crop in for fear of a bad financial statement causing growers to deliver their crop elsewhere. Then there is a fourth reason - Rumsfeld's "Unknown unknowns".

    It is fascinating how many people say dump/sell yet I didn't see analysts recommending a sell on this stock the entire time it was falling from $92 to $16.
    6 Oct 2012, 12:19 PM Reply Like
  • I bet a LOT of my retirement money on this stock.

    I would really try to get the statements finished.
    who could benafit from deceiving investors.???

    is their actions a crime and can investors try to get them in jail?
    7 Oct 2012, 05:27 PM Reply Like
  • This was back in February but there is a good amount of detail for the timeline of how an investigation will work here:
    http://nyti.ms/QZGZqC

    As to who benefits, anybody whose bonus is tied to performance has an incentive to juice the numbers.

    As far as being a crime and trying to get them into jail, you will probably have to wait for the justice department and SEC to finish their investigation and then see if charges are pressed. I don't expect the criminal case to unfold quickly though - almost certainly they would wait until the restatement as that would be used as evidence against them.
    8 Oct 2012, 11:47 AM Reply Like
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