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Diamond Foods update: Restatements and Price Collapse
Posted by: Frank Voisin (IP Logged)
Date: February 9, 2012 12:25PM
I wrote about the Diamond Foods (DMND) back in November, noting the controversy surrounding the bizarre “momentum” payments ostensibly made to help walnut growers for the following season (though it was revealed many of the recipients would not be supplying DMND this year!). Making matters worse was the fact that this issue came to light while DMND was in the midst of acquiring Pringles from Proctor & Gamble (PG) in a share swap. With the dramatic decline in DMND’s share price, I didn’t think the deal would go through.
Here was my conclusion from November:
Quote:Yesterday DMND announced the results of its internal investigation. Below is a snippet of the announcement (emphasis added):
Quote:The market did not react well; shares fell another 41.68% after hours and are down 74.9% since the Wall Street Journal broke the story of the momentum payments in September.
Author Disclosure: None
Stocks Discussed: DMND, PG,
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