More Questions On Diamond Foods (DMND), This Time About the Analysis
Tweet
Share
E-mail
Get Alerts DMND Hot Sheet
Join SI Premium – FREE
Despite another vigorous defense of the stock by a KeyBanc analyst, shares of Diamond Foods (Nasdaq: DMND) are losing steam again. This could be in part related to a Wall Street Journal article which put into question the credibility of accounting consultant hired and cited by KeyBanc, credited with the recent surge in the stock.
The Journal noted that KeyBanc consultant Robert Willen admitted in an interview that he spent just several hours on his analysis and didn't speak to the company or to any growers, focusing narrowly on accounting guidelines and the specific terms of Diamond's contracts, which he said clearly give the company "unlimited" pricing discretion.
Willen, who was quoted by KeyBanc as saying Diamond properly accounted for payments and "the investigation can be wrapped up rather quickly," is now saying "maybe I wasn't choosing my words carefully enough."
After rallying 53 percent on Friday after KeyBanc's initial report citing Willen's analysis, shares of Diamond Foods gave back 23 percent Monday after announcing it would delay its 10-Q and not complete its investigation until mid-February. The stock down an additional 0.42% today.
The Journal noted that KeyBanc consultant Robert Willen admitted in an interview that he spent just several hours on his analysis and didn't speak to the company or to any growers, focusing narrowly on accounting guidelines and the specific terms of Diamond's contracts, which he said clearly give the company "unlimited" pricing discretion.
Willen, who was quoted by KeyBanc as saying Diamond properly accounted for payments and "the investigation can be wrapped up rather quickly," is now saying "maybe I wasn't choosing my words carefully enough."
After rallying 53 percent on Friday after KeyBanc's initial report citing Willen's analysis, shares of Diamond Foods gave back 23 percent Monday after announcing it would delay its 10-Q and not complete its investigation until mid-February. The stock down an additional 0.42% today.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Three reasons why M&A may pick up: KeyBanc
- KeyBanc Upgrades Acadia Realty Trust (AKR) to Overweight
- KeyBanc Upgrades Innovage Holding Corp (INNV) to Overweight
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
KeyBancSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
