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Diamond Foods, Inc. Message Board

  • fredexley May 21, 2013 11:45 AM Flag

    May 29th Oaktree deadline

    I have a question for the thoughtful long suffering longs. (verioinc, wooglin_kai) If May 29th comes and goes without any restructuring of DMND's debt, does that change the way you think about the stock? Is the extra cost of restructuring that 12% money already built into the stock price?

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    • let me ask u kind sir the opposite and to all you short suffering shorts...if may 29th comes and there is a restructuring, does that change the way you think about the stock or are u already in ur short mind pricing in a refinancing?

      • 1 Reply to cleto487
      • fredexley May 21, 2013 4:10 PM Flag

        I do not currently have a position, though I made a little bit on puts last quarter and at the restatement. In regards to your question, it depends on the terms of the deal. If the restructuring involved less dilution than I previously thought would be necessary, it would certainly change the way I think about the stock. But the lack of a deal, it seems to me, sucks somewhere around a dollar a share out of this company.

    • "If May 29th comes and goes without any restructuring of DMND's debt"
      The above is my expectation, hence I will "think" the same as I do right now!

      • 1 Reply to wooglin_kai
      • That is a very good question. It seems to me that very few longs are concerned or even know about this deadline. I thought I was following this company very closely, but I knew nothing about it until last week. Since expectations are not circulating in the minds of us longs, there likely is not much chance for people to feel disappointed. When the shares were below say 16, then the 12% financing is likely fully priced into the share price. I could see the shares fall back to 16, but with the market so bullish, and the r2k index at 100, who knows if it would pull back far. Most of the big block of shorts were placed around 60, so even if they cover at yet higher prices it likely does not make a lot of difference to them. New shorts would be against the trend and $40 behind on the entry, also with a low probability of success and a high risk to reward, etc. In this market one does not have to look far to find much better short possibilities...

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