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Why Dean Foods is Up 96 Percent Tuesday (DF)

Zemanta Related Posts ThumbnailShares of Dean Foods (NYSE: DF) are up 96 percent in early trading Tuesday but before you get all bullish on the stock, there’s good reason for the move and it has nothing to do with an earnings blowout, merger, or other exciting news.

It’s a reverse stock split. For every two shares that an investor owned, it became 1 share with twice the value. Yesterday’s closing price was $9.67. Today, the stock is trading at $18.97.

Why is the stock not up 100 percent? First, the overall market is down and second, investors could be reacting to the company reiterating its guidance reflecting post split numbers. Previously, it expected earnings of $0.05 to $0.08 per share. Now, $0.10 to $0.16. There’s no change in the forecast, however.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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