|Bid||1.0600 x 1800|
|Ask||1.0700 x 2200|
|Day's Range||1.0500 - 1.0700|
|52 Week Range||0.8700 - 10.5000|
|Beta (3Y Monthly)||0.47|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Every investor on earth makes bad calls sometimes. But really big losses can really drag down an overall portfolio. So...
Dean Foods (DF) is grappling with cost inflation and soft volumes. However, the company is on track with its comprehensive productivity program, including OPEX 2020 and company-wide initiatives.
(Bloomberg) -- The biggest U.S. milk processor is now a penny stock.On Tuesday, Dean Foods Co. shares closed at less than $1 for the first time since they started trading more than two decades ago. The destruction of market value, which has whittled down to about $90 million, is as simple to explain as it is dramatic: Americans aren’t drinking as much milk.Amid fierce competition to supply grocery stores’ own brands, Dean’s margins are razor thin -- averaging about 3.8% over the past five years. The company’s situation deteriorated further after Walmart Inc., a key customer, built its own milk processing plant last year.While the Dallas-based company is looking to sell assets, much of the interest is in possible debt restructuring. Its bonds have been trading at distressed levels, and that’s led its equity to trade at “nuisance” levels, said Hoai Ngo, senior credit analyst at Bloomberg Intelligence. In other words, the way bonds are trading, there wouldn’t be enough value left in a bankruptcy proceeding to pay equity shareholders.Dean declined to comment, referring to previously stated expectations of generating positive cash flow in 2019 and securing additional liquidity by the end of the second quarter. In its first-quarter earnings call, the company said it refinanced its “debt capital structure in February, which provides us with the resources necessary to drive our commercial agenda and execute our enterprise-wide cost productivity plan.”Stocks that trade below $1 on the New York Stock Exchange for too long also run the risk of being delisted, said Jennifer Bartashus, an analyst for Bloomberg Intelligence. That can be a cause of concern to investors and make it difficult for the company to bring its share price back up, she said.“In bankruptcy proceedings, all the classes of shareholders have a right to say ‘I deserve something,”’ Ngo said. For equity shareholders, though, “they’ll just give them a little something to go away.”That may help explain why the shares keep falling even as Dean’s bonds have recovered a little ground in the past month. The notes due 2023 are trading at 58 cents on the dollar, up from a low of 51 cents. Still, at a 24 percent yield, the bonds are well into distressed levels.(Adds company's previous comments on liquidity in fifth paragraph)To contact the reporters on this story: Lydia Mulvany in Chicago at email@example.com;Katherine Doherty in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: James Attwood at email@example.com, Millie MunshiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dean Foods (DF) is battling input cost inflation and soft volumes. However, the company is strongly focused on cost-productivity measures and efforts to strengthen portfolio.
Before we spend days researching a stock idea we'd like to take a look at how hedge funds and billionaire investors recently traded that stock. S&P 500 Index ETF (SPY) lost 2.6% in the first two months of the second quarter. Ten out of 11 industry groups in the S&P 500 Index lost value in […]
Dean Foods Co NYSE:DFView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is high Bearish sentimentShort interest | NegativeShort interest is extremely high for DF with more than 20% of shares on loan. This means that investors who seek to profit from falling equity prices are currently targeting DF. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $1.63 billion over the last one-month into ETFs that hold DF are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. DF credit default swap spreads are rising towards their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
High-yield bond investors are shying away from the riskiest companies again, says Bank of America Merrill Lynch.
Moody's Investors Service ("Moody's") today downgraded Dean Foods Company's ("Dean") Corporate Family Rating (CFR) to Caa1 from B3 and its Probability of Default Rating to Caa1-PD from B3-PD. Moody's also downgraded the company's senior unsecured notes to Caa2 from Caa1. At the same time Moody's affirmed the company's Speculative Grade Liquidity Rating at SGL-3.
Walmart (NYSE:WMT) reports its first-quarter earnings May 16 and good news is predicted. The world's largest retailer is expecting revenue of $125.24 billion and earnings of $1.02 per share, with $1.05 per share hoped for. That would be about 20% more income on just 3% more revenue, compared with 2018.Source: Shutterstock But Walmart has been hyping this growth for such a long time that it's already baked into the stock, which is up over 19% over the last year. Walmart opened for trade May 13 at about $100 per share, with a forward price-to-earnings ratio of 20 and a dividend yielding just 2.05%.The last is key. Despite its claims of "beating" Amazon (NASDAQ:AMZN), its great white whale, Walmart remains a slow-growing retailer valuable mainly for its yield, which has been declining for years. The current dividend is just 4 cents per share higher than it was 5 years ago.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is Walmart Stock a Tech Stock?Under Doug McMillon, now in his fifth year as CEO, Walmart has billed itself to Wall Street as a technology company.Walmart has tried many things in technology. It built a Silicon Valley skunk works, Walmart Labs, then bought Jet in 2016. Today it has a tech-driven market on Long Island for "immersive shopping." It's pushing curbside pick-up of online orders. It's promising one-day free shipping to nearby addresses, integrating the online and offline experience in ways Amazon's Whole Foods can only dream of. It's turning its Vudu streaming service into a subliminal shopping network for its products. * 7 Dividend Stocks to Buy as the Trade War Reignites Walmart is also adapting technology inside its stores. It's using digital watermarks to assure freshness on fresh food. It's using robots for clean-up and inventory.But none of this moves the financial needle. Walmart sales in fiscal 2019 were just 7% higher than in 2016. Net income declined by more than half, due to all those investments. Walmart has been running hard to stay in place. The Control PointWhat may work better are Walmart's efforts to gain greater control of its supply chain.Sen. Elizabeth Warren loves to rail against Amazon's store brands crushing competitors, but Walmart really does it. Since Walmart decided a year ago to produce its own milk from its own dairy herds, Dean Foods (NYSE:DF), which had been supplying that milk, has lost 80% of its value.Walmart is now talking about building its own meat herds, a network of ranches and processing plants that should have Tyson Foods (NYSE:TSN) executives shaking in their patent-leather shoes.Walmart's cannibalization goes beyond fresh food. Seeing the success of Petsmart and its Chewy spin-off, Walmart is expanding its line of veterinary clinics and store-branded pet supplies. As service becomes a bigger part of retail, Walmart moves in, and no one complains.Here is the real difference between Amazon and Walmart. While 58% of what Amazon sells comes from outside merchants, Walmart controls its supply chain. Walmart gets a bigger profit push from that than from technology.Walmart has a host of store brands throughout its store and regularly creates more. These brands give it control over even the notoriously fickle clothing supply chain, which is moving from China to other locations in Southeast Asia. The Bottom LineWalmart may be the world's smartest retailer. It is on top of demographic trends. It can deal with tight or loose labor markets. It has sound controls over its retail distribution and is gaining control over its supply chain.Analysts think that for fiscal 2021, which starts next February, Walmart could bring in earnings of $5 per share. That's what half of them are basing buy recommendations on. It's a price-to-earnings multiple of 20 at Walmart's current stock price.Unless a big hunk of that comes back as dividends, however, you don't want it. Because that's still why you buy the stock.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post Technology Is Not Saving the Day for Walmart Stock appeared first on InvestorPlace.
Dean Foods Co. shares slid almost 8% in premarket trade Tuesday, after the company posted a wider-than-expected loss for the first quarter as sales fell short of estimates. The company said it had a net loss of $62 million, or 67 cents a share, in the quarter, wider than the loss of $265,000, or breakeven, posted in the year-earlier period. The company's adjusted loss per share came to 41 cents, compared with a FactSet consensus for a loss of 27 cents a share. Sales fell to $1.795 billion from $1.981 billion, below the $1.897 billion FactSet consensus. The company, with a portfolio that includes DairyPure, Land o Lakes and a venture with Organic Valley dairy products, said the loss was on track with its internal full year plan and cost-cutting program. "We have made significant progress integrating our operating model, right-sizing our cost structure and introducing innovative new products," Chief Executive Ralph Scozzafava said in a statement. "As a result of these actions, we expect to deliver positive free cash flow for full year 2019." The company is exploring potential strategic options to accelerate its business transformation, he said. Shares have fallen 80% in the last 12 months, while the S&P 500 has gained 10%.
Rumors of a potential company sale sent shares of distressed dairy name Dean Foods Co. Takeover talk normally is good news, but in this case Dean Foods is so depressed that a 10% move took its shares to just $1.68. Things have gotten so bad for Dean Foods that its shares are down 80% over the last year and 56% year to date.
Our call of the day is a bullish one from Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities, who tells MarketWatch that he’s got a laundry list of reasons why equities will see gains for the “next several years.”
reported a wider-than-expected first-quarter loss on Tuesday as the company continues to focus on its restructuring efforts in the face of increased competition and declining milk consumption. The Dallas-based company, which owns the Friendly's ice cream brand, posted a first-quarter adjusted loss of $38 million, or 41 cents a share, compared with a profit of $13 million, or 14 cents a share, in the comparable year-earlier period. Dean Foods in February announced plans to restructure and has received roughly half a dozen offers for various parts of its business, including the Friendly's operation, The Wall Street Journal reported on Monday.
On a per-share basis, the Dallas-based company said it had a loss of 67 cents. Losses, adjusted for non-recurring costs, came to 41 cents per share. The results fell short of Wall Street expectations. ...
The Friendly’s ice cream manufacturing business is for sale — along with Lynn-based dairy company Garelick Farms — as parent company Dean Foods Co. looks to restructure in the face of competition and declining milk consumption.
Dean Foods (NYSE: DF ) releases its next round of earnings this Tuesday, May 7. Get the latest predictions in Benzinga's essential guide to the company's first-quarter earnings report. Earnings and Revenue ...