Pay NO attention to the FOOL claiming DF will go BK, talk about an idiot.
DF has slashed debt from over 5 billion 4 years ago down to 1.5 billion. Not only will they not go bk, the legacy DF will initiate a dividend by or before q1 2014. This fool has popped up on this board shorting DF at various price levels over the last few years, he claims one big options win, but has usually scurried off, quiet, as DF has drifted from 7 to 20. Talk about a fool who absolutely has no clue about DF balance sheet, even after initiating several losing short trades. Input costs GOING up, DF margin going down, has been his down fall because he believes that myth. DF reprices their milk up or down holding margins within a couple pennies a gallon. This is done every month. Though MILK as a beverage has been in a decline for about 20 years, it is still a staple. Worry when the school systems serve coke or pepsi for lunch instead of milk, lol, that is the backbone OF DF sales. So as sales might decline 1-2% a year over the next decade, cutting a route here or there, or consolidating a plant here or there is all they need to do. BK talk, you U R A BIGGER fool than I originally thought. Df has a covenant in their debt that has prevented a dividend until certain ratio levels were met, they have more than surpassed those covenant levels, and good to go.
Not saying a R split is anything to get happy about but it will make for a larger dividend per share, and a greater number of WWAV per share down the road, WWAV should do well.
You sir, are an idiot. Walk57 and i used to have great conversations for quite some time before he sold. I bought a massive option call position when DF was @ $7.50. To this day it has been my most profitable trade ever. Check my post history.
I watched a company with promise be destroyed by a greedy, arrogant and ignorant CEO along with incompetent management. This company has been whittled down to what they are trying to call a "pure milk play". LMFAO! DF had no longterm prospects a decade ago which is why wwav was heavily built and invested in to begin with! Now that most critical and profitable part of the company is gone.
A spinoff? What for? To "increase shareholder value"? Really? How kind. The spinoff was to free wwav of df because anybody and everybody knows df has zero future. None. Its core business is getting more expensive all the while demand decreases. Its a double whambammy. Unsustainable. Df will be bankrupt by 2016. By that time wwav will be completely independent and will aquire the df properties through bidding at the bankruptcy auction. They will aquire the assets for next to nothing and the losers will be the shareholders and bondholders.
Its a beautiful fraud. You wont understand it until long after the regret that you didnt sell at these bubble levels subsides.
U sir are an idiot, DF will make money every year, there is no doubt. At a point in time maybe DFA buys DF so we have one national supplier, but as of today DF supplies the bulk of the nations milk and makes money. Df has almost no debt left, the bulk of earnings was still the milk division not wwav.