Is This Biodiesel Company in Over Its Head?

Shares of Darling International (NYSE: DAR  ) plunged 4% Tuesday after Moody's downgraded the rendering and biodiesel specialist's Corporate Family Rating.

To explain the move, Moody's cited weakened credit metrics and execution risks associated with Darling's pending (and incredibly ambitious) $2.17 billion acquisition of Vion Ingredients. 

However, as the Fool's Steve Symington insists in the following video, while Moody's was right to recognize the risk, investors shouldn't misinterpret its cautiousness as a reason to believe Darling has bitten off more than it can chew.

Check out the video to get Steve's full take, then feel free to weigh in regarding whether you think Darling investors should be concerned.

You'll never want to sell the three solid picks in this free report
Steve believes Darling International has what it takes to remain dominant in its industry for decades, but that doesn't mean it's the only great long-term stock out there.

As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2762500, ~/Articles/ArticleHandler.aspx, 4/19/2014 9:20:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement