Diamond Foods (DMDN) Is One To Watch Again
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Traders may want to keep an eye on Diamond Foods (Nasdaq: DMND) Friday following Wednesday's nearly 21% drubbing on the back of news that former Director Director Joseph Silveiri committed suicide.
Mr. Silveiri was on the audit committee before he recuused himself because of his dealings with walnut growers, which is at the center of the accounting questions that has now put Diamond's deal to buy Pringles in jeopardy. The company said the Mr. Silveiri's death was unrelated to the accounting probe, and any suggestions that the two are related is demeaning to his legacy.
Despite the questions, P&G (NYSE: PG) said it is committed to selling Pringles to Diamond. However, the action in the stock suggests otherwise.
Amid the turmoil, analysts at Jefferies said even under a worst case scenario shares of Diamond Foods are worth $39, or 40% above current levels.
Mr. Silveiri was on the audit committee before he recuused himself because of his dealings with walnut growers, which is at the center of the accounting questions that has now put Diamond's deal to buy Pringles in jeopardy. The company said the Mr. Silveiri's death was unrelated to the accounting probe, and any suggestions that the two are related is demeaning to his legacy.
Despite the questions, P&G (NYSE: PG) said it is committed to selling Pringles to Diamond. However, the action in the stock suggests otherwise.
Amid the turmoil, analysts at Jefferies said even under a worst case scenario shares of Diamond Foods are worth $39, or 40% above current levels.
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