Assuming the current balance sheet is correct, and there is absolutely no reason to assume that, but these are the figures we have to deal with. The assets of this company is worth $454,795 divided by 21 million shares values the shares at $21.65. or about 15% premium at today's price. With all the uncertainty surrounding this company it is not worth the risk/reward. Law suits and fines will erode this small difference in no time.
What is more alarming is the removal of the CEO and CFO for what appears to me a minor infraction of the misappropriation of grower payments, sound more like they were cooking the books in a big way. Good luck to you longs and shorts hope it works out for you but I am out of here with my 10k shares and there are none to short according to UBS.
you say the assets are 500 and something thousand.......what did pringles sell for.....just pringles........now doesn't dmnd have their own products............i think you are dead wrong.......but everyone has their own opinion...... do your dd better
Steve I will put this in a way even you can understand.
Assets on a balsnce sheet only reflect cost less adjustments not current worth.
Assume a company buys a building or 1 million and over time say 15 years depreciates th asset to 200,000 but over the same time the building increased in value to 3 million then your logic says the company is only worth 200,000.
Now using Dmnd's assets their brands if sold for current replacement value would be approx 1.7 billion that is 700 million more than the current enterprise value now dive that buy the 21 million shares and each share is worth 34 more than the current value.
Now you knew this but you are short and got caught on the wrong side of the trade or want to buy in cheaper.
Do you think you can move this stock with your bs?
Well, he is asking an honest question The share price follows the
earnings and forecasts, more than the balance sheet. A good example is
IBM with a book value that is a small fraction of the share price.
I think the future share price trend will depend upon how well the
company can repair relations with the growers. That is key to what may
be their most profitable division. If the growers continue leaving and
fewer are willing to be suppliers, then the share price has less of a
chance. If the company takes assertive and honest actions to quickly
focus on regaining the trust of the growers, then the share price will
recover and short sellers will lose interest in holding positions
against these shares. They are working on this, so it remains to be