Is This Biodiesel Company in Over Its Head?
Shares of Darling International plunged 4% Tuesday after Moody's downgraded the rendering and biodiesel specialist's Corporate Family Rating.
To explain the move, Moody's cited weakened credit metrics and execution risks associated with Darling's pending (and incredibly ambitious) $2.17 billion acquisition of Vion Ingredients.
However, as the Fool's Steve Symington insists in the following video, while Moody's was right to recognize the risk, investors shouldn't misinterpret its cautiousness as a reason to believe Darling has bitten off more than it can chew.
Check out the video to get Steve's full take, then feel free to weigh in regarding whether you think Darling investors should be concerned.
You'll never want to sell the three solid picks in this free report
Steve believes Darling International has what it takes to remain dominant in its industry for decades, but that doesn't mean it's the only great long-term stock out there.
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love.
The article Is This Biodiesel Company in Over Its Head? originally appeared on Fool.com.Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Darling International and Moody's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.