Lioness Associates, Inc.

Economic & Corporate Risk/Yield Reports

October 30, 2012  -- Diamond Foods Risk/Yield Update for 2012

Refer to Reading Graphs for information on interpretation of the graphs.

The DMND 2012 Delta Core/Transient graph indicates this company may be coming off from the momentum into Risk but, it does not yet appear to have significant momentum into yield.     



  

May 30, 2012 -- Diamond Foods Risk/Yield 2012

Diamond Foods announced earlier this year plans to restate it's earnings for 2010 and 2011 and to appoint a new CEO and CFO (article).  While this company may have serious past issues,  it is addressing them in a transparent manner and to that end, a new CEO was appointed earlier this month and a cash infusion was made by Oaktree Investment (see article).

Looking at the astrological configurations, it appears that the worst may be over or at least moving towards completion and there may be news over the next few weeks to that effect.  This is not to say that everything has been concluded as it will likely take until the end of the year to get on a better financial footing. 

Looking at the DMND Delta Core/Transient 2012 graph, the beginning of the year the core (black line) is heavily "risk" but, it starts to move into "yield" around the June period.  The move into "yield" does create a peak but, it is a narrow peak which indicates that there is some momentum but, not particularly strong.  This same period in the USA graph is relatively flat (see home page) and it would be questionable whether this momentum could cause a positive "bounce" in the stock price of Diamond Foods if the overall market is not moving up.  Close to the same period there is also a Transient move into "yield".

The DMND Risk/Yield 2012 graph is interesting in that it depicts the "risk" data factors decreasing from the beginning of the year to about the May 2012 period and then a increase of the "yield" factors.  While June and a part of July 2012 might be interesting because of the increase in "yield" data factors, the "risk" factors increase again for September/October 2012. 

We'll check back on this stock either after earnings or around July 2012.


    DMND Delta Core/Transient 2012 graph


       DMND Risk/Yield 2012 graph
  

Disclosure as of 5/30/2012 - Diamond Foods (DMND) is not part of our portfolio at this time.