The Five Dumbest Things on Wall Street This Week: June 15

3. More Diamond Foods's Foolishness

The nuttiness at Diamond Foods (DMND), alas, continues.

The San Francisco-based snack maker, whose brands include Emerald Nuts and Pop Secret popcorn, sank 8% percent on Monday after the company admitted its inability to report on its three most recent fiscal quarters by Nasdaq's June 11th deadline. As a result of Diamond's accounting ineptitude, the Nasdaq will likely move to delist its stock.

Wait a second! We forgot to mention that the company is also in the process of restating its entire fiscal 2010 and 2011 results. And silly us, we also neglected to say that Diamond plans to hold its annual meeting only after it finally files its belated, restated financials.

Sorry about that folks. It seems as though Diamond's carelessness is rubbing off on us. All these months of incompetence are apparently taking their toll.

Remember if you will that this sorry tale started last year when the company's alleged payments to walnut growers became cloaked in controversy. Nearly all winter the stock gyrated wildly as Wall Street analysts and financial reporters alike doggedly dug for the truth about Diamond's disbursements.

Finally, Diamond's audit committee concluded this past February that approximately $80 million in payments were booked in the wrong periods. Unfortunately, however, by the time the dingbats at Diamond were able to straighten out their accounting issues, their partners at Procter & Gamble (PG) decided against selling them the Pringles potato chip brand and unloaded it to Kellogg (K) for $2.7 billion instead.

Oh man. Forget Stockholm Syndrome. We've been trapped by these nutjobs for so long that we've come down with a case of Diamond Dumbness!

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