The Dumbest Thing I Read Today – AP’s Diamond Foods Story

From the AP:

“NEW YORK (AP) — Shares of Diamond Foods Inc. rose Monday after investment firm BlackRock disclosed that it purchased a stake in the maker of Emerald nuts, Pop Secret popcorn and Kettle chips.

THE SPARK: BlackRock said in a filing with the Securities and Exchange Commission on Friday that it purchased a 7.85 percent stake in Diamond Foods….”

NO – FALSE – BlackRock did not disclose that it purchased a 7.85% stake in the company.  What BlackRock did was file an updated 13G, which shows that they increased their position by less than 75,000 shares over the last year, as the stock price got cut in half.  One might reasonably assume that if BlackRock really loved $DMND (no positions) that they might have bought more than 75,000 shares – but in any case, the AP’s story that BlackRock purchased a 7.85% stake in the company is flat out incorrect.

The correct story is that BlackRock, as of 12/31/2011, owned 1,658,722 shares of DMND, or 7.52% of the company, and that as of 12/31/2012, they owned 1,733,229 shares or 7.85% of the company.  The new filing shows that their position has increased by 74,507 over the course of 2012.

Of course, that story isn’t quite as *sexy* is it?

Here’s the old 13G

Here’s the new 13G

-KD

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