Nice article from Seeking Alpha........"This Turnaround Is For Real"
Diamond Foods: This Turnaround Is For Real
Aug 31 2013, 13:16 by: Marshall Hargrave
We've been following shares of Diamond Foods (DMND) ever since its accounting scandal forced it to restate earnings for the 2010 and 2011 fiscal years. Our opinion is that in times of uncertainty there's opportunities for profit, but the key is timing. We think that time is now, even after its 52% run YTD.
We feel the company has turned the corner and put its past firmly in the rear-view mirror. One big investor certainly agrees with us and that's billionaire Stevie Cohen. His SAC Capital has increased its stake by 3X from 2Q and now owns 5.1% of Diamond Foods. SAC joins the event driven hedge fund, Litespeed Management, as one of the major hedge fund owners of Diamond Foods.
Diamond Foods sells snacks under the brands Emerald, Pop Secret and Kettle Brand. Emerald is known for its nuts, Pop Secret for its popcorn, and Kettle Brand for its potato chips. The company also sells culinary nuts under the Diamond of California brand. In FY 2012, sales to Wal-Mart accounted for 18% of total sales and sales to Costco accounted for 12%.
Diamond Foods has been in business for over a century and just in the last decade started to branch out beyond walnuts. In 2004 it launched the Emerald snack brand, and snatched up Pop-Secret in 2008 and Kettle Brand in 2010.