Seriously over-reaction! Net...accounted for payments in wrong period
The three-month investigation, later taken up by the U.S. Securities and Exchange Commission, concluded that about $20 million in “continuity” payments made to walnut growers in August 2010 and about $60 million in “momentum” payments in September 2011 weren’t accounted for in the correct periods, Diamond said. The board also identified material weaknesses in the company’s financial reporting controls.
"Even without Pringles, Diamond is a solid company that has products in growing businesses such as chips, popcorn and snack nuts, Ramey said. The earnings restatement will push costs back to prior periods and should clear the air for investors once the restatements have been made, Ramey said in an interview."
I agree, shorts have to cover too so we will see what happens. My question is DMND did not get the Pringles line cheap so if its such a good property why aren't other companies lining up to purchase it. My feeling is they overpaid anyway and there aren't any takers at the price they paid. Company will still be profitable after all this mess clears up so bring the stock down to the teens and I will make my second purchase. First purchase in afterhours at 23.50 so give me a $15 print and I will hold the stock for a year.