NEW YORK (TheStreet) –- Specialty snack food company Diamond Foods (DMND) will report fiscal first-quarter financial results Monday after market close, and the company's shareholders are getting nervous.

Diamond, whose products include PopSecret popcorn, Kettle chips and Emerald snack nuts, is still operating in a weak packaged food environment, where companies like Hershey (HSY) , General Mills (GIS) and Kellogg (K) have struggled to grow sales.

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Not wanting to take any chances of a poor result and worse, downbeat guidance, Diamond investors have begun to sell some of their shares, sending the stock down 2.6% over the past month. By contrast, the Dow Jones Industrial Average (DJI) and S&P 500 (SPY) have posted gains of 2.3% and 2.17%, respectively, during that span.

Being cautious, as investors have shown, is indeed the best play here. This is because it's tough to know what Diamond Foods you're likely to get.

The chart below, courtesy of Google Finance, shows how quickly and easily Wall Street can change its mind.

While Diamond might not have been as great as its 45% jump in February (from $24.09 to $34.93) would suggest, the company was also not as bad as its 25% decline from March to June may indicate. What you are left with is something in the middle. And given that the food sector has shown little to no signs of life, being in the middle is not good enough. Not to mention, these shares, despite the recent declines, are not as cheap as they look.

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