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Top Equity News’ goal is to provide investors with up to date news from around the world on stocks, options, forex, ETFs, and futures. In an ever changing global economy it is vital for all investors to have access to every available news source. In our Options Update articles, twice weekly... More
  • Spoiled Sour Stock 0 comments
    Nov 15, 2010 12:04 PM | about stocks: DF
     If the food produced by this company is half as bad as the performance of the stock, then consumers are in trouble and should seek medical attention. The stock has fallen to a new 52-week low in the $8 range from a high close to $19 per share. The recent quarter was a stinker and caused the stock to plunge over 16%. Things don’t look to improve much going forward either. Nauseated shareholders probably recognize that I am talking about Dean Foods (DF).


    Curdled Quarter

    Third-quarter earnings were terrible as net income plunged 51% to 13 cents per share. Analysts were looking for 21 cents. Sales did rise, but not enough to counteract the poor earnings. So what was the main culprit in the quarter. It was soaring butterfat and other dairy commodity costs that did the company in. According to the company, butterfat prices zoomed 70% over last year. In even worse news, the man who has been credited with cost cutting efforts, CFO Jack Callahan, is leaving for another company at the end of November.

    CEO Gregg Engles used the “c” word regarding its Fresh Dairy Direct-Morningstar business. That would be “challenging” in terms of the business environment. That is a euphemism for things are going terribly and we don’t know when they will turn around.

    Continue reading: http://topequitynews.com/spoiled-sour-stock/

    Stocks: DF
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