WhiteWave (WWAV) is having a separate earnings conference call on November 30th. Dean has already reported WhiteWave’s earnings as part of its earnings report. It is interesting because they clearly state they will “comment on forward outlook.” I am guessing the outlook is good as there is no reason for them to comment on it if it was not.
I am disappointed in the Dean Foods investment. The thesis of it being undervalued has been correct. However, the wildcard, the value of WhiteWave has gone down considerably ($2+) since my valuation. As a result, my value of Dean has gone down in relation. I see it now valued between $18-$21. Obviously, the strategy of shorting out WhiteWave would have worked out nicely. Since, Dean has been essentially flat for quite a while.
Also, there has been no information about the sale of Morningstar since the WhiteWave IPO. Hopefully, it was not a marketing ploy to hype up the IPO. The more time that goes by, the more unlikely Morningstar is going to get sold.
I am contemplating of selling a full or partial stake in Dean at a loss at around $17.
Disclosure: I am long Dean.