DMND

Kellogg Rockets On Announced Purchase Of Pringles

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Kellogg (K) shot up over 5% on news that the food manufacturer would take over Diamond Food’s (DMND) failed deal with the chip company.  Kellogg will pay P&G almost 2.7 billion for  ownership of Pringles. “In April, Procter & Gamble signed a deal with Diamond Foods, which agreed to buy Pringles for roughly $2.4 billion, mainly in stock. Diamond, which had previously bought Pop Secret and Kettle brand potato chips, heralded the purchase and played up Pringle’s global presence and influence in grocery stores. But the deal got delayed, as Diamond was ensnared by an accounting scandal after short-sellers started … Read more

Diamond Foods Now Cooks! …their books. CEO and CFO Out, Forced to Restate Earnings

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Diamond Foods is getting crushed after hours, (down over 43%) on the announcement that they, like an alarming number of corporations, have trouble following longstanding GAAP (Generally Accepted Accounting Principles).  According to their press release, a total of $80 million in payments to growers was not accounted for during the correct time periods.  In a sign of good faith, Michael J. Mendes and Steven M. Neil have been placed on administrative leave. From Diamond’s press release: “The Audit Committee has concluded that the Company’s financial statements for the fiscal years 2010 and 2011 will need to be restated. Over the course of … Read more