Most financial blogs have yet to rip into diamond foods. I know, I know, they are merely financial blogs. But looking at Zachs, and the paragon report out today:
NEW YORK, NY--(Marketwire -11/07/11)- Companies in the Processed Goods sector have been dealing with a rise in global food costs in recent times. For retail and consumer goods companies, rising food and commodities costs along with a weak dollar and a sluggish economy have caused margins to be squeezed. The Paragon Report examines investing opportunities in the Processed Food Industry and provides equity research on Diamond Foods, Inc. (NASDAQ: DMND - News) and Kraft Foods, Inc. (NYSE: KFT - News). Access to the full company reports can be found at:
Financial blogs are usually the first to call out garbage. Remember all those Chinese stocks that got ripped by bloggers??? Both Zacks and Paragon are neutral, and haven't exposed anything alarming. Stay the course folks, it'll pop back
The whole fiasco originates from one analyst through Barron's of an old news. I even wonder if it would be worth all the trouble to acquire Pringles. In the worst case scenario, i.e., no Pringles, DMND would have traded better. At least, DMND itself would be a viable buyout candidate. Scratch the Pringles deal! Just because the market price is higher than the contract price, the dumb growers can't assume the momentum payment is a payment for the difference. JMO.
30% and that percentage has been going down for years.
It's not like Diamond is the only one selling walnuts, look at Planters and Kraft, they will have to raise prices like EVERYONE else if walnut prices keep rising, which I doubt they will. And when walnut prices fall back down, they will keep the prices high to the consumer along with higher margins.