Diamond Foods (DMND) resumes trading after announcing it will restate two years of financials...


Diamond Foods (DMND) resumes trading after announcing it will restate two years of financials and the firing of its CEO and CFO. Shares -38.1%. Can an announcement from Procter & Gamble (PG) that its sale of Pringles to Diamond has been called off be far behind?

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Comments (16)
  • Diesel
    , contributor
    Comments (364) | Send Message
     
    Now DMND might have become a buy.
    8 Feb 2012, 05:02 PM Reply Like
  • Ex-diamond grower
    , contributor
    Comments (2) | Send Message
     
    You might want to dig a little more than 2 yrs financials
    8 Feb 2012, 09:06 PM Reply Like
  • Econdoc
    , contributor
    Comments (2938) | Send Message
     
    where was the BOD?
    also must go first
    9 Feb 2012, 08:06 AM Reply Like
  • gnuman
    , contributor
    Comments (86) | Send Message
     
    Controversy sometimes creates cash. Might be a good time to buy a few option calls here
    8 Feb 2012, 05:16 PM Reply Like
  • chopchop0
    , contributor
    Comments (4704) | Send Message
     
    @Diesel

     

    Why? Wasn't the Pringles acquisition predicated on a share price north of $44. Now they will have to take on even MORE debt to finance it.
    8 Feb 2012, 05:32 PM Reply Like
  • sheeple2012
    , contributor
    Comments (203) | Send Message
     
    Agree, timing issue... not fraud
    8 Feb 2012, 05:32 PM Reply Like
  • todd.kaime
    , contributor
    Comments (101) | Send Message
     
    Word from a Pringles middle manager is that the deal is dissolved.
    8 Feb 2012, 10:28 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12675) | Send Message
     
    When they said nut company no one realized they were referring to their management and executives. I'd say get out but it's too late. It's a good thing I said get out a lot earlier than now.
    8 Feb 2012, 11:01 PM Reply Like
  • Tack
    , contributor
    Comments (15965) | Send Message
     
    Screaming-buy alert coming right up.

     

    Here you have a company that was selling for over $90 recently, before the payment-timing hysteria erupted, and was selling for over $50 early last year, even before the announced Pringles acquisition. According to indications, it's going to open below $25 tomorrow.

     

    Keep in mind that there's not a single dollar missing or unaccounted for. It's simply an issue of making paper reallocations of already-paid prior expenses to different quarters. Cashflows are totally unaffected. In the end, aside from a temporary black eye, and the usual lawyer ambulance chasing, this will have no lasting effect whatsoever on the company's existing businesses, even if the Pringles deal gets cancelled. And, if the deal survives, that's just a bonus.

     

    Strategy:
    -- Sell shorter-term OTM puts
    -- Buy longer-term ATM/OTM calls
    9 Feb 2012, 12:11 AM Reply Like
  • slard271
    , contributor
    Comments (64) | Send Message
     
    Very interesting idea. But what about macroscopic downside potential? Granted, much of that may already be factored in with an overabundance of other negative sentiment.
    9 Feb 2012, 02:04 AM Reply Like
  • BDUBS
    , contributor
    Comments (142) | Send Message
     
    Tack-I think your spot on and actually prefer shelve pringle, maybe a buyback. This is a very real company with seriously valuable brands on sale today
    9 Feb 2012, 05:39 AM Reply Like
  • gnuman
    , contributor
    Comments (86) | Send Message
     
    Those JUN'12 $22.50 calls will look attractive once the market opens. I'm sure that by June the stock will turn around and head back towards $30
    9 Feb 2012, 09:10 AM Reply Like
  • Robert DiAlberto
    , contributor
    Comments (142) | Send Message
     
    This could be interesting. I don't own DMND, but might be tempted today. Just have to wait and see.
    9 Feb 2012, 09:17 AM Reply Like
  • Fergfroginv
    , contributor
    Comments (3) | Send Message
     
    Remember the Green Mountain Coffee turn around. Most investors have long forgotten their troubles.
    9 Feb 2012, 10:03 AM Reply Like
  • Diesel
    , contributor
    Comments (364) | Send Message
     
    I bought some shares at $21 in the pre hours and they are already trading for $23 at the moment.
    9 Feb 2012, 10:04 AM Reply Like
  • gnuman
    , contributor
    Comments (86) | Send Message
     
    I HIGHLY doubt that DMND would go bankrupt, I bet more on a buyout offer at these depressed prices, management cleanup and someone taking over the brands.
    9 Feb 2012, 04:40 PM Reply Like
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