Diamond is working diligently to complete financial restatements for the affected periods and will file all required reports with the U.S. Securities and Exchange Commission as soon as possible. While the timing of the restatement is difficult to predict at this time, the Company will endeavor to provide updates on timing and other material developments.
That would really fluff up some feathers if they nail an absolute date!
Thanks for posting this. I think next time I should not just research the financial data of a company. This accounting investigation actually costs one's life. It is quite scary. No wonder there are 50% short float.
I would have shorted it last year if I know this. I am holding my shares for acquisition though.
The accounting issue first reared its ugly head in October 2011 when the 8-k was filed. In this filing, DMND documented certain momentum payments made in September 2011 as prepayment for FY 2012 crops.
I think it was the Wall Street Journal that called DMND out on this and said the payments were for FY10 crops. The audit committee of DMND initiated an investigation. During the investigation, a member of the committee committed suicide. From $90 ps in September, the stock price dropped. On February 8th, the committee reported that the WSJ was right. The CEO and CFO were fired. Restated earnings are now being complied. The sudden drop is attributed to the truth coming out.
I thought they found out the accouting issue on Feb 8. (I bought DMND after the big drop)
After checking the news, it seems like the accounting issue happened last year.
What is the exact date they found this accounting issue? And can anyone explain the sudden drop on Feb 8?
Yes. I keep wondering why the MM stopped at $21.44 the day of the news when it fell from $37.00. A $16.00 drop but ever since it's been slowly recovering and now rests at $24+.
If more bad news were coming It should have declined further but did not. The person mentioning the Charels Swabb ofeer was correct. They are completely out of shares and in order to sale short without getting caught naked shorting their asking client to move their shares into a holding account. The problem is you agree to a fixed amount for doing so but your ability to access is hard as it requires the shres to be transfered back on to your personal acct. If their lent out your screwed until their put back.
"That would really fluff up some feathers if they nail an absolute date!"
Ran, simply chose one of the following contradictory tid bits you authored and you'll "know" when something is about to happen LOL!!!
"A pick up in volume only means one thing news is leaking somewhere."
Okay, I'm with you; a spike in volume may suggest something is about to be happen/be released.
"The extremely low volume would suggest a high probability of some news from Diamond regarding the restatement soon."
How long does it take to do financial restatements? I for one don't believe that it takes this long. In fact if your life depended on it you could do it in a day. Why the stall. This worries me. The action this whole week has been dismal at best and the market has been up. I just don't like this at all.