The halo effect. Exactly true. While I can't rule out an imminent acquistion offer, the company still has ALOT of work to do getting their product lines back to maximum profitability. Read the last CC transcript. The real financial picture is far different now than it was 2 years ago.
If an offer comes now, it would be a lowball one. If it comes later in the year, likely higher. Either way, I don't see DMND existing in its current form going into 2014.
DMND is a prime target for a buyout at this time. IF a buyout is coming I would expect a announcement within the next couple of months before the stock price goes to high. I don't know what the short position is going to do now. It's apparent that DMND is not going to take a major dive and is only going to go up from now on. Buy on the dip. DMND is expected to be at $25.00 range by end of next month
I agree it's a prime buyout target but it has to clean up its act first before a major CPG or even a PE firm steps in. Investors remain doubtful about management with good reason. Still, a good place to start a long position here.