Lorne Steinberg
Dean Foods
DF-N
DON'T BUY
Mar 26, 2019
Buy the high-yield bonds? In his high-yield bond fund, he has over 70 issuers. Be diversified. If you just own a few, and one goes bankrupt, you're in trouble. Dean Foods is a commodity, a tough business, and there's a move away from milk.
(A Top Pick June 29/11. Up 19.6%.) 7% June 2016 bond. Recently spun off one of its divisions into an IPO. Bigger issue is what is the value of the company post the spin off of one of its organic milk and dairy divisions with good earnings power, so he will be re-examining this holding.