It hasn't been a great couple of months for Diamond Foods (Nasdaq: DMND). As recently as Sept. 21, its stock achieved a 52-week high at over $96 a share. However, upon an announcement that management was investigating some accounting procedures, the stock price fell nearly 24% last week. The investigation will probably result in an adjustment to this year's earnings, but hopefully the company can figure out what is wrong with its accounting so it doesn't affect future quarters. But there are other things that could still make Diamond Foods a buying opportunity.

We're No. 2!
These accounting irregularities and the resulting damage to the share price have delayed the completion of the acquisition of Pringles from Procter & Gamble (NYSE: PG). The Pringles sale would signal Procter & Gamble's exit from the food business and allow the company to focus on the growth of its consumer products business. P&G's loss would be Diamond's gain; the addition of the Pringles brand to Diamond's stable of snacks would triple Diamond's revenue to about $2.4 billion a year. Upon completion, Diamond would become one of the world's largest snack companies, rubbing shoulders with Frito-Lay owner PepsiCo (NYSE: PEP).

Or No. 3
Another food company plans to directly compete within the snack food category. Kraft (NYSE: KFT) plans to spin off its global snacks group, providing flexibility for it to acquire additional snack brands, such as those held by ConAgra Foods (NYSE: CAG). Last year, Kraft's snack group accounted for more than $6 billion of revenue in the U.S. alone, a number that ranks it second to Frito-Lay with regard to snack sales if they were separate from the Kraft grocery business. One disadvantage with Kraft is its lack of chips, giving Diamond a leg up with the acquisition of Pringles.

What do you think?
Could the accounting investigation uncover further issues? I don't think so, but only time will tell. As long as it is able to find and correct the problem, the pending acquisition of Pringles could make this company sparkle in your portfolio and provide you with some great snack alternatives for your kitchen. Keep an eye on Diamond Foods by adding it to your free My Watchlist by clicking here.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.