DMND: accounting issues

Discussion in 'Stocks' started by m22au, Nov 22, 2011.

  1. m22au

    m22au

  2. m22au

    m22au

    https://twitter.com/herbgreenberg/status/139169362052521985
    https://plus.google.com/u/0/107858226132224039781/posts/RmBih75ZkEj

    In the above Google Plus post, Herb Greenberg puts his $DMND "tweets from earlier put into story form".

    ***

    www.bloomberg.com/news/2011-11-23/d...ctor-death-unrelated-to-accounting-probe.html

    "Diamond Foods Says Director Death Unrelated to Payment Probe"

    (my comment: as if a company would actually come out and say "yes, the suicide of our director is related to an accounting probe")

    ***

    https://twitter.com/herbgreenberg/status/139279937566810112
    http://www.tweetdeck.com/twitter/herbgreenberg/~NfUqH

    "Bloomberg is reporting that the $dmnd director's death is "unrelated" to the accounting probe. the company was not willing to say that, outright, when I spoke with the spokesman. Further, it appears that by the time Bloomberg called the coroner's office, the coroner's office was not willing to share any information and directed the reporter to the police department."
     
  3. Daal

    Daal

    Are you short this stock?
     
  4. m22au

    m22au

    Not yet. Going back to our previous discussion, this is the type of situation where the likelihood of the stock going up by 50% is quite high, especially if the accounting issues are shown to be benign.

    However this article is making me feel more confident that the stock still may have further downside to go:

    http://www.seekingalpha.com/article...director-s-suicide-evokes-necessary-questions
     
  5. AK100

    AK100



    I think that event might be the first time in history it's ever happened.

    !STOP PRESS!

    Expected accountancy problems were one big mistake, the company's books are fine :)
     
  6. m22au

    m22au

    Yeah I could have phrased that better.

    The accounting investigation relates to "accounting for payments made to walnut growers".
    http://www.bloomberg.com/news/2011-...er-delay-in-closing-pringles-acquisition.html

    The worst case scenario is that there is some kind of serious accounting fraud, including stealing of company money. The word "serious" before "accounting fraud" is probably redundant because accounting fraud is serious.

    However if it is "just" the case of under-reporting expenses, and/or incorrectly recording expenses in one period when they should be in another, then the stock may rally.

    Either way, I'm not confident enough to hold any position in the stock now, but that may change.
     
  7. d08

    d08

    They are (or rather, were) in the process of buying Pringles from P&G, as the deal deadline got closer they discovered "accounting errors" and basically told P&G that they don't have the money. It's an extremely messy situation, will they make a movie about this in a few years time?

    Long.
     
  8. m22au

    m22au

  9. tell you what, they are selling overpriced garbage, especially the chips, which is always a warning sign . bags of air
     
  10. m22au

    m22au