Author Topic: DF - Dean Foods  (Read 6061 times)

5xEBITDA

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Re: DF - Dean Foods
« Reply #20 on: November 13, 2019, 10:35:46 AM »
The Spring 2019 issue of G&DVille has an [MBA] student write-up on the DF bonds, interesting to see how it played out from their recommendation at 66. Pg 22 - 23.

https://www8.gsb.columbia.edu/valueinvesting/sites/valueinvesting/files/Graham%20&%20Doddsville_Issue%2036_vF.pdf



cherzeca

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Re: DF - Dean Foods
« Reply #21 on: November 13, 2019, 10:36:12 AM »
this will be an asset sale out of bankruptcy.  wont be pretty for dean bondholders

wabuffo

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Re: DF - Dean Foods
« Reply #22 on: November 13, 2019, 10:43:08 AM »
interesting to see how it played out from their recommendation at 66. Pg 22 - 23.

last trade at $19.75.  oops.

wabuffo

Cigarbutt

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Re: DF - Dean Foods
« Reply #23 on: November 13, 2019, 02:06:12 PM »
this will be an asset sale out of bankruptcy.  wont be pretty for dean bondholders
If you have the time or the inclination, would appreciate an additional comment.
Is your assessment based on asset sales out of bankruptcy in general or is it specific to Dean Foods assets?

It looks like there is potential for a stalking horse bid. Significant write downs are expected but the company had established an extensive and comprehensive distribution footprint and infrastructure, whose value, I would submit, is not recognized in the tangible assets, as the initial posters that rekindled the interest for this name, mentioned above, before things went downhill.

There is clearly a leverage problem here but there is a level where the underlying business would make sense for a buyer. I guess it depends on the meaning of 'pretty'.

alpha

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Re: DF - Dean Foods
« Reply #24 on: November 17, 2019, 11:40:29 PM »
I was wrong on this one (luckily I divested during a recent high)

In hindsight the Saputos CEO's commentary should have been warning that no buyers would step up... next time I will listen to Cigarbutt  ;D

Cigarbutt

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Re: DF - Dean Foods
« Reply #25 on: November 18, 2019, 04:57:09 AM »
I was wrong on this one (luckily I divested during a recent high)

In hindsight the Saputos CEO's commentary should have been warning that no buyers would step up... next time I will listen to Cigarbutt  ;D
Well, in this case, all I did was hypothetical and you made money so maybe I'm the one who should learn. :)

Viking

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Re: DF - Dean Foods
« Reply #26 on: November 23, 2019, 01:59:14 PM »
Good summary of Deans: https://www.fooddive.com/news/how-dean-foods-bankruptcy-is-a-warning-sign-to-the-milk-industry/567486/

I am interested to see what happens to Dean Foods given i own a liitle Saputo.
« Last Edit: November 23, 2019, 02:01:34 PM by Viking »