Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, snack products company Diamond Foods
With that in mind, let's take a closer look at Diamond Foods' business and see what CAPS investors are saying about the stock right now.
Diamond facts
| Headquarters (Founded) | San Francisco (1912) |
| Market Cap | $518.6 million |
| Industry | Packaged foods and meats |
| Trailing-12-Month Revenue | $965.9 million |
| Management | Acting CEO Richard Wolford Acting CFO Michael Murphy |
| Return on Equity (Average, Past 3 Years) | 12.1% |
| Cash/Debt | $3.1 million / $531.7 million |
| Dividend Yield | 0.8% |
| Competitors |
ConAgra Foods Frito-Lay Kraft Foods |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 25% of the 265 members who have rated Diamond Foods believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, fellow Fool Seth Jayson (TMFBent), wrote that Diamond Foods has plenty of room to fall:
I don't think the pain is over here. This is a company that was obsessed with its image (they love to write emails to whine about their treatment in articles, for instance...) Why? Because they were running a roll-up game, buying "growth" with inflated stock. ...
Now it looks like we had outright fraud, with the CEO and CFO getting canned for moving costs around in what looks like an attempt to smooth the numbers. Pringles is a crummy asset anyway, but they won't even be able to pretend they'll be harvesting "synergies" by folding it in, since I would bet that [Procter & Gamble] won't bless the buy …
What's a broken growth story worth? What's a broken growth story that may have been entirely predicated on fraud worth? Surprisingly, the answer may be "more than the current market price," but I am willing to bet that most investors won't see it that way for quite a while, and I expect this thing to continue to crater.
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