In late Dec. I was analyzing my portfolio to see what end of year losses I might lock in, to clear out the junk for purchasing the stocks that I have in mind for my new '13 strategy. When I came to Diamond, I was truly conflicted. Looking at their balance sheet, it doesn't look great. They really screwed up their core business, which was Walnuts. The bailout by Oaktree was tanamount to going to Guido for a loan. Again, heavy amounts of debt with a big hole to dig out of. Right before Christmas, I made up my mind to sell but didn't make the time to place the trade.
Then the holiday parties started. At my families Christmas Eve party I noticed a few things. There were chips for appetizers. BRAND: KETTLE. 3 kinds mind you, that I nor my wife purchased. Then onto the dinner. Salad with Walnuts. Pictaccio jello salad with walnuts. BRAND: DIAMOND. Grandma puts a movie on for the kids and what do the kids ask for? Popcorn. What BRAND: POPSECRET.
Noticing a trend, I put some questions to many realatives in my large family. "Do you regularly buy and of these brands?" Almost everyone in my family that I polled. 40+ people, stated that the regularly buy and or current have one of these brands. This totally changed my perspective on this company.
Based upon this extremely loose market study, I can to the conclusion that this company has products which are popular and well liked by a broad consumer base. However, much like AMZN with it's 2000+ PE, it still has to grow into it's infrastructure. I believe that Diamond has gotten through much of the hardest parts of their rebound. I think that although their Walnut division is going to eat #$%$ for quite a while, they will find alternative supplies and will recover that segment of their business.
As for their other brands, I think that they will continue to grow. As they continue to dig themselves out of a hole, they will steadily increase their bottomline.
Based upon the above, I have decided to increase my stake in Diamond at these levels. BUY
I agree with you.Been observing this for over a year and it's quite tragic to investors who lost on this.But I am lately seeing their products in most of the stores and that includes recent inclusion of nuts in our local grocery store and Sam's club.Out of curiosity I got their walnuts from sam's club and very much impressed by the quality.For the first time we ran out of walnuts that quick .Now they are also available in snack size packs in our store.Just a year back,kettle brand was only limited to Oraganic stores,but now they are every where.I know it's a risk reward ,but I am going in now.I always wait and look for bargains before investing,but hold long.Hope I won't be wrong on this.Just wondering if there is a possibility for this to go below 10(at current stock market conditions).
Sometimes it's hard to connect numbers on a screen with actual true to life products. Thanks for reminding us that this company has some awesome food brands. The problem with DMND hasn't been it's products, nobody is questioning that. The problems have been management, accounting, and PR issues. Time will heal those wounds.
Good comments here. Owning DMND shares from this point forward is an exercise that very few on an internet chat board know or understand. Oh they understand the QUICK BUCK, the QUICK 25%, the IMPATIENCE that the share price hasn't doubled in a week ... they get that fine ... and when their huge returns aren't realized they go on to lose money in another so-called HOT STOCK.
These shares are an investment. They're about holding for six months, a year, two years, or longer, and not sinking one's entire savings into it expecting it to skyrocket next week.
Cheers to fellow Longs - and keep buying the products :-)