Diamond Foods(DMND_) was down 37% today after announcing plans to restate its financial statements for the past two years.
Still, Tim Ramey, of D.A Davidson, maintained a buy rating on the stock, with a price target of $44. Ramey said the audit committee report is clear that there was no intent to push costs through, adding the walnut costs were close to what should be accrued.
Tamey said Diamond Foods can either continue operating its business or sell off some of its assets. He said he thinks it will continue to run the business, which he maintained was untouched by the scandal.
I think it may take a little time to get back to 40, but 28-30 definitely will come in a week or so.
Those posters using the bk word are hilarious in that the only mis-management found was the misappropriation of 80 millions to the incorrect accounts. This is not someone pocketed the money. Nothing has materially changed but the weak financial practices are revealed. It is not good, but will never lead to bk. These posters are either new shorts or those experiencing sellers' regrets noticing DMND is moving back up over the price they had sold. Despite the bleak outlook of Greece and the close to 100 points down in pre-market this morning, DMND is up in active trading pre-market. That tells you a lot of its current value.
The problem he was having was that the panel didn't want to hear his facts. Like CNBC as a whole, all they wanted to say was "fraud" stay away, etc...
Just like they've said gold is in a bubble, apple is in a bubble, oil is in a bubble, so many times over the past couple years there are groups out there that actually bet on how many times they will say gold is in a bubble during the show. Of course in hindsight, they always say they were right on days like today when the price pulls back a bit.
The only honest brokers on the show are Finderman and Najarian. Finerman sticks to her story good or bad and is a value investor vs. a fast money guy and najarians who are options guys through and through. The rest are basically weasles looking to justify why what happened during the current day will continue to happen as far as the eye can see, and when the market moves the other way the next day, they say they've made a 180 during the day and are now doing exactly the opposite.
Bottomline is for your portfolio's health this show should be avoided.
They are now in default on their bond covenants. I am sure they are renegotiating, but if they fail they are headed into bankruptcy.
This company is in a very vulnerable position right now. While it could be forced into bankruptcy, wiping out equity holders, the more likely scenario is someone sweeps in to buy it.
The stock is oversold for sure. After hitting the low in three years and stayed at over 23. It is as low as it will go. Not only DMND has intrinsic value well over that, in the three high volume sell-offs (Wednesday after hour, Thursday and then Thursday after hour), all those wanted to sell has sold. Funds will move in to buy, so are many astute investors. The next day or so will also see short-time players exit with their 12% windfall, as some posted here. We'll see the share price move us gradually to about 28-30. It will stay there waiting for news on resolution of management and further investigation.
I must say that I was disappointed in the analyst interview this afternoon on Fast Money on CNBC.
He is the DA Davidson analyst who talks about 44 dollar valuation but when questioned by the panelists he backed off and couldn't answer very well in my opinion. I noticed that, in fact, the stock fell off after his interview. I had been long since yesterday but sold in the afterhours after hearing his statement. I was disappointed but turned a 12+% increase from my buy at below $21 yesterday. I will plan to watch and see how this trades-in fact if it goes lower tomorrow and consider getting back in---maybe.
Thanks for the information...I am thinking about buy some call options did you guys play with true stock or options? I am new to DMND so trying to get opinions knowing that is all they are so no hard feelings either way just nice seeing if any longtime holders have ideas!! Thanks
The news and resulting sell-off today was over exaggerated. It should not take the auditors very long to rectify where and how the payments to the Walnut growers was accounted and whether it was deliberate deception or an honest error. I weigh in on the later. Once the fog clears and confidence restored, then Diamond should see itself back in the 30's and the P&G Pringles a done deal.