Friday, December 10, 2010

Dean Foods Bonds

(click on image to enlarge)

Dean stocks rose significantly today, mostly on news regarding bonds. The bond interest rate is more than twice the 30 year mortgage rate.

A Bloomberg report:

"Credit Suisse Group AG analyst Robert Moskow says Dean’s strategy of driving down costs to undercut smaller, less efficient milk processors and force them to scale back capacity hasn’t yielded results. At the same time, Dean is facing pressure from retailers who are discounting milk to attract penny-pinching consumers while demanding price breaks from suppliers. Also, more shoppers are buying cheaper private label milk products instead of Dean’s brands."

So, here we are with dairy farmers near the bottom and the largest fluid in terrible financial shape.

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