What's driving people to but this supposedly soon to be worthless stock? Is the Phoenix going to rise from the ashes?should have bought at its low of 4 cents maybe?
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Stock is back down to 18 cents.
Stock is currently being delisted. Dont buy. Google dean foods newsroom.
Also inspect the track going to corrugation. You will find spoiled milk and batter on the overhead track plates. Mold spore readings would be enough to shut plant down if they actually ran a swab test in Le Mars
Dean Foods Le Mars would fail a safety inspection. Interview a third of the crew there and they would fail a SQF test. Inspect the grated floors in culture department and you will find curd that has turned to vasoline.
TraderMo must be a newbie on here. There was an earlier post on this board of an interview of the CEO of Saputo where he said they had no plans to buy Deans.
Trader more Saputo was never interested in buying Dean's. The CEO himself said they were never interested in buying any dairy in the us. What are you some corporate plant?
TraderMo, how has Deans performed since that Saputo "offer"? Was the offer for the equity or total enterprise value? OK, so you're hoping for a sales multiple? There isn't any free cash flow in sight without plant closures, asset sales (like ice cream) and significant overhead cuts.
Long winded stock dude apparently hasn't heard that the DOJ is investigating a DFA buyout to see if it violates anti-trust laws. If it does then then DFA won't be able to buy all of Deans. Also it doesn't matter what you think Deans is worth its what a buyer is willing to pay for it.
You’re conflating stock trading with a buyout/acquisition?? Wow. Deans can sell only certain plants and some property/equipment/trucks after court approval in a package i.e. carve-out. The icecream business alone is worth 900 million. They have over 7000 trucks, trailers, tractors, and other vehicles that also will need to be sold. DFA already indicated to the court they’ve enough money to buy Deans and by the way, they’re a profitable co. with annual sales of 13 Billion. It wouldn’t hurt to get that figure to 20 Billion and compete even more strongly with Nestle, Kraft, Saputo and others.
Deans may not have competitive advantage (as of now, due to Walmart, Meijer, etc.) but it has strategic value and geographic reach. Ch. 7 would be a forced sale that the industry is not currently prepared to weather. Also, a buyout of the entire company allows the buyer valuable tax credits to the tune of $400 million that they can use year after year against their tax bill. That alone is significant enough. As long as the population of the US and the world continues to increase, people will consume milk.
Willing to bet 10K right here right now, that Ch. 7 is NOT happening. This isn’t Borders or Circuit City that you can hold a “fire sale” for 2-3 weekends and get rid of all the books, mugs, electronics, stereos, etc. In the case of Deans, EPA and OSHA will need to get involved, each plant (they have divested a few but still own 50+) will have to be inspected and certified, and all that could take over a year. Its unlikely the milk supply chain in South Central, SW, SE will be allowed to suffer a supply disruption due to a liquidation of Dean plants. Esp. in the middle of a school year, no way.
The second post from this one shows a lack of understanding. The main rule of stock trading is buy for little as possible and sell for a lot. Yeah DFA isn't the only game in town but nobody wants or needs to buy Deans as a whole. They're waiting for Chap 7 so they can buy what pieces they want for little as possible.
The ignorance on this board is astonishing. Too many uneducated rants from rank and file that are probably disgruntled ex-employees. DFA is NOT the only game in town. They're just a stalking horse bidder (I won't even bother explaining that to this crowd). Anyone could acquire Deans for 500-600 Mil and the stock will fly to the moon. All the fake news about declining milk sales is just that - fake news, Deans real estate alone is valued at 500+ million book value, with total PPE around 1 billion. Even at steep discount of ~50% in Ch. 11, thats still huge. Not to mention brand value, distribution network, and the capacity that will be lost if its liquidated. US govt. will NEVER allow that to happen. Why? Because Deans is the king of school milk supplies and the replacement cost of it is simply too great.
I sold a few thousand shares at $0.063 and don't regret it.
If you can get over $0.30, sell now. The vast majority of shareholders aren't selling because they don't know any better and still work at Dean or used to. DFA won't buy all the plants and if they do, quite a few will be sold off on the cheap or closed.
Who wants to invest in traditional milk plants unless the valuation is super cheap?
Volume is declining, Walmart and Meijer built their own plants over the last three years, lots of overcapacity and innovation isn't working.
merger with adf in the works 4 dollars a share potential
Worse than lotto odds?
I highly doubt it, but I understand what you are trying to say.
Some stockholders who got in before Chapter 11 have convinced each other that Dean Foods assets are going to sell for billions more then book value and that will result in stockholders getting paid for their shares. Have seen some totally ridiculous expectations of getting $5 per share when all is said and done. Stock is worthless and assets not going to sell at anything close to book. People gambling on something that has worse odds then the lottery.