Diamond Foods, Inc. (DMND) Message Board
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Here's the math
Company has to restate 2011 EPS by net $40 million, and 2010 EPS by $20 million. That equates to restatements of $1.30 and $.70 per share respectively.
So:
2011 EPS New $1.30 (was $2.60)
2011 EPS New $1.20 (was $1.92)
Stock should trade at $18-$20 assuming a 15x multiple.
But throw in new CEO and DOJ charges with accounting fradu and probably go a few dolars cheaper.-
no u are assuming that theyDIDNT take into accoun, but the audit committe never talks about missing money or expenses BUT ONLY not accoun d in teh correct the correct periods, so i believe taht hey will lower or increase another and it will smooth out thats all..
- 2 Replies to cleto487
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9 million shares short
1/2 the float
time to buy at 21
buy buy buy -
doesn't matter. lawsuit settlements will
be at least 100 million. they will lose
the lawsuits. obviously must settle.
and PG has other offers now. it's over.
this is a 15-20 stock and no more for
at least 3-6 months.
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The real question has to do with 2012 earnings and the Pringle deal. If the restatements and the removal of Mendes have the effect of mending fences with disaffected growers, 2012 may not be too badly affected. P&G knew the restatement was coming, may be the place they will look for Mendes' replacement if the Pringles deal goes ahead in some form. DMND has at least eliminated much of the uncertainty surrounding the stock.
In AH,m DMND is trading at about $22 and is being featured on Fast Money by Herb Greenberg.- 1 Reply to lner2512
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Should the earning adjustment be a zero sum? Up in one year and down another?
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yes, my thoughts exactly.
Pringles is off the table.
Proctor said if any wrong doing was
discovered, the deal could be called off.
I don't see Diamond being able to
make it happen anymore. Maybe after another
year or so, but not this year.
Lawsuits will be paid.
Chart says 20, it will test that.
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