Whoa! SunPower Corporation (SPWR) and More Stocks Far Outpaced The Dow Chemical Company (DOW)

Diamond in the rough
It’s tempting to think investment house BlackRock was nuts for taking a nearly 8% stake in Diamond Foods, as the nut grower is still trying to right itself following the accounting scandal that led to the ouster of its CEO and CFO and ultimately wiped out $56 million in profits from its books. But having cleaned house and restated its financials, it’s reasonable to expect the Diamond will be able to get back on track. Certainly the world’s biggest money manager does.

Still, it’s worthwhile to reflect on what might have been. Before the accounting brouhaha erupted, Diamond was poised to snag the Pringles potato chip brand from The Procter & Gamble Company (NYSE:PG) that would have made it the second largest snack company behind PepsiCo, Inc. (NYSE:PEP)‘s Frito-Lay brand. Instead, the deal fell through and cereal maker Kellogg Company (NYSE:K) picked up the chips.

Kellogg recently reported its fourth-quarter results, and while on a GAAP basis it recorded a loss because of a pension-related charge, net sales surged 18% in the period, with Pringles being the driving force behind most of the gains. Without the acquisition, sales growth still would have come in at 5.3%, its biggest gain in more than a year, but it shows what Diamond could have enjoyed had it won the brand.

BlackRock may still realize very good returns from its investment in the nut grower, but investors who have lost 80% of their investment because of its shenanigans will find that a hard nut to crack.

The article Whoa! These 3 Stocks Far Outpaced the Dow originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Corning and Procter & Gamble and owns shares of Corning.

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