Dean Foods Co. (fka DFODQ)

[SC777]

Seems that way - especially when you see 300K blocks going through . . .

[Longer Than Most]

Agreed. I’m thinking that they’re just trying to load as much as they can

[TuMaRu]

Whys the general market tanking today? Some new flu from China?

[SC777]

Just manipulating the absolute piss out of this.

[trendzone]

There are some very corrupted SOB's manipulating the price here, probably because they hold very large naked short positions, it's has been reported to the SEC, and some investors have said that they have received replys, that they have opened a case investigation into the complaints about certain market makers doing illegal trading manipulation, hopefully this is true.

[TuMaRu]

Must say for its part DF is not a well-run company -- too many false statements by the new CEO hoodwinking investors. He said planning a turnaround and then went and declared BK. Same goes for the other guys before him, each one lining his own pocket starting with Greg Engles, the guy who got rid of WhiteWave, biggest mistake by Deans

[SC777]

Gotta be kidding me with the manipulation here . . . .

[RAlbert]

With offer in hand and I only waiting for court approval I guess it moves to a $ then settles at .50 cents. and still worth much more... I am accumulating small chunks

[SC777]

Still heavy manipulation here - frustrating but worth a hold IMO.

[TuMaRu]

Whats keeping it down today? Chart not looking good to me but I'm no technical expert and its an OTC stock, TA might not work

[RAlbert]

This is a $5 stick now the better the counter offer the best the share price hold tight and wait for big run

[Longer Than Most]

I agree, gap was open all day yesterday and was close to filling but didn’t. Looking good now with that red to green move

[trendzone]

The corrupted naked shorting manipulators need to be forced into covering before they get the chance to cover

[SC777]

PPS going back up here - I think the action yesterday was BECAUSE we opened with a gap at .194. They filled that gap this morning - so hoping to resume run.


$DFODQ

[trendzone]

it was talked about on one of the Twitter feeds leanked to this stock

[SC777]

He filed for manipulation generally, or with respect to $DFODQ?

[trendzone]

I read on Twitter yesterday on one of the bigger trading blogs, some x professional trader from one of the bigger trading firms like Goldman who has past ties with certain contacts at FINRA and the SEC has filed a complaint with them of illegal trading manipulation, hope it's true, would love to see some of these criminals exposed and fined

[SC777]

Gap fill and run, cheers everyone :)

[SC777]

It's definitely "illegal" but they never do anything about it. Only time you win is when these dicks get squeezed.

Yes makes you wonder why they're fighting so hard to keep this down - probably still lots of regular shorts from NYSE that need to cover, looks like 6 million regular shorts still need to cover.

[TuMaRu]

Thats so true. This is heavily manipulated and also shorted like crazy even though small cap, Ch. 11 company. Seems like 50% of volume yesterday was shorts, over 3.4 million shares. Where do they get inventory for all this shorting? Isn't it illegal??

[SC777]

And gap filled

[SC777]

They might be going for a gap fill at .194

[SC777]

One thing is certain - they are manipulating the piss out of the PPS here.

[trendzone]

As usual the corrupted shorts manipulation don't want to get squeezed

[TuMaRu]

While it seems like DFA plans to absorb all of Deans liabilities, not sure thats a $2.5 B offer. To put it in context, Saputo looked at Deans books last May. Dean apparently wanted 18-20 mil per plant which would put the price at 66 x 20 = $1.32 B plus another ~80 mil for equipment, trucks etc. i.e. at least $1.4 B *AND* assumption of 700-800 mil debts.

Saputo would need to pay >$2.1 B so they passed probably. Problem is that Dean was trading at $3-4 at that time, and not in a position to command "normal" valuation due to many prior missteps. Most analysts pegged Deans enterprise value at 300-500 million, not $2+ billion -- poorly maintained plants, antiquated tech, union labor, lower demand etc. Normal valuation would be 92 Mil shares x $22-25 PPS = $2.1-2.3 B EV if all was well but it isn't obviously. My 2c....

[RAlbert]

Thanks SC777. If it is the case, the share price would be around $4. wonder why market is so ignorant today.

[SC777]

DFA is assuming all liabilities as part of the $425M purchase - that puts the total value of the buyout at $2.5 billion.

https://www.cnbc.com/2020/02/17/dairy-farmers-of-america-agrees-to-buy-dean-foods-americas-biggest-milk-producer-for-425-million.html

"Dairy Farmers of America announced Monday that it has agreed to buy Dean Foods, America’s largest milk producer, for $425 million.

The dairy co-operative will also assume Dean’s liabilities as part of the deal to acquire 44 of the company’s facilities, as well as other assets."

[SC777]

Assuming all liabilities means that the deal is valued closer to $2.5 billion.

And that's just a starting bid, the stalking horse - and it's only for a part of the assets :)

99 other interested parties

[SC777]

It's in the purchase documents, and also mentioned in this CNBC article:


"Dairy Farmers of America announced Monday that it has agreed to buy Dean Foods, America’s largest milk producer, for $425 million.

The dairy co-operative will also assume Dean’s liabilities as part of the deal to acquire 44 of the company’s facilities, as well as other assets."

https://www.cnbc.com/2020/02/17/dairy-farmers-of-america-agrees-to-buy-dean-foods-americas-biggest-milk-producer-for-425-million.html

[stockstalk09]

if some how the other interested party's were to start a nice little bidding war, that would keep the filthy corrupted naked shorting fleabag MM's from hanging around and possibly smack the ones from today in their faces.

[TuMaRu]

Where did you read that DFA will assume ALL of Deans' liabilities? I went thru the APA docket but can't remember seeing that explicitly mentioned. Its rather unclear on the liabilities. They do however, plan to forgive $165 M of claims and milk contract obligations that likely are the full/partial $173 M they're owed by Deans.

[SC777]

Lots of games today with the trading - seemed like a lot of naked shorting came in around .28.

[SC777]

Not only is the DFA offer subject to higher bids over the coming weeks, but the offer included assuming ALL of Dean Foods liabilities. They received interest from 99 other parties - this is just the stalking horse.

https://www.google.com/amp/s/www.cnbc.com/amp/2020/02/17/dairy-farmers-of-america-agrees-to-buy-dean-foods-americas-biggest-milk-producer-for-425-million.html

[stockstalk09]

SHLDQ owned a lot of valuable real estate that was probably what made the big difference, but many here probably don't fully understand what the real value that just might still be left here, the market will most likely get it right at some point, and the price will reflect it at some time before the week is over, hopefully at higher levels than todays highs.

[davidsson10]

+$$$ DFODQ

Booked.

[TuMaRu]

Today's action seems to indicate that market is reading this with great skepticism i.e. Deans is giving itself away, and its overall a bad deal for everyone including shareholders. Hence the stock did not go up. If you remember SHLDQ last year, it went from 55 cents to over $2.75 in just a few days. Sears assets had real value that was transferable to other parties. Deans plants apparently have no value except to another milk producer. So this is not going to end well in my revised view.

[RAlbert]

How much is the total debt and anything left to SH from $425 million deal? At least we have one bid in place...

[Longer Than Most]

$DFODQ no one talking eh?

[RAlbert]

what is conversion to per share equals to? would that offer assumes all liabilities Dean currently have been taken over by Daily farmer of America?

[TuMaRu]

Not sure anymore if this will have a good outcome. Historically DF has been entangled in lots of lawsuits for unfair trade practices, some in collusion with DFA. So they're not viewed as a good player by other industry participants and by farmers, consumers, DOJ etc. I wonder if the judge will see through all that and rule unfavorably against DF management, and of course, shareholders who are last in line on anyone's radar.

[SC777]

Give it another couple weeks

[TuMaRu]

Not sure why it posted twice....

[TuMaRu]

Stock is wanting to go up but looks like there's some overhang pressure. It may test resistance at 0.34 and 0.60 in the next few days after which has a clear path to 1.50 and beyond. Has everyone on this board sold and moved on? My view is that they were forced into BK by DFA whom are owed $173 M by the company. Pensions were just an excuse. Once these 2 items are cleared by the court, it can move onto profitability.

[SC777]

The filing says they still hold about 6.5 million shares.

[TuMaRu]

OK, thanks. Looks like Dimensional Fund Advisers sold its position today, there's new 8-K filed in the sticky notes. Amended Statement of Ownership. Maybe thats why the price drop.

[SC777]

Can't get an equity committee without a petition from shareholders - looks like a group formed and retained counsel - much better chances than without representation.

Trustee always initially rejects an Equity Committee, so a petition is needed.

[TuMaRu]

Thanks for the info. What makes you believe the Equity Committee will get approved by this judge? The filing mentions that US Trustee denied Equity committee back in Dec., if I read that correctly.

[SC777]

Shorts playing games today - Equity Committee filing was made with the BK court :)

[SC777]

Equity Committee filing:

https://www.law360.com/articles/1243146/dean-foods-shareholders-ask-for-ch-11-committee

[Fordman65]

Can't imagine the Courts wiping out Pension Liabilities without taking Equity out along with it. Risky play here IMO.