When the Dairy Princess craze hits, the stock goes wild.
Dairy Queen stock prices are on the rise, as the dairy industry has begun to recover from the dairy crisis that rocked the industry in the early 1990s.
Dish owners have been looking to recoup some of the losses of the industry’s collapse in the 1990s, which saw the dairy sector collapse with the closure of several of the company’s stores and thousands of jobs.
The company has been trying to regain some of those lost jobs with new retail stores and a new focus on healthier products.
But some investors are concerned that the stock could slip further under the weight of its soaring share price, especially after the stock was recently valued at more than $600 million by Credit Suisse analysts.
A few years ago, DRC stock was worth just $100 million, according to Credit Suse.
“We do think it’s overvalued, and we think it is due to a number of factors that we think will cause a drop in share price,” DRC chief executive Mark McLean told the ABC.
Investors have been keen to get in on the dairy craze, with the stock being sold for $1.5 billion.
It was originally supposed to fetch $10 billion, but that figure has now been increased to $12 billion, with more than half of that amount coming from the US market.
In March, the Australian Securities Exchange suspended trading in DRC and its stock, which had been valued at $5 billion, citing the health scare that gripped the dairy business.
There was a market correction in the Australian market and that led to a market collapse, with DRC shares falling to less than $4 million.
By July, the company had sold out of stock and its market cap had collapsed by more than 70 per cent.
When DRC announced the closure on May 3, a lot of stock had already been sold off and it was a very different picture from what investors were expecting.
Since then, the dairy stock has risen more than 50 per cent in value, which is a record for DRC.
Analysts say that there is a lot more upside for the dairy company.
We expect the price of DRC to increase as the stock price recovers from the shock,” Ian Clements, senior dairy analyst at Bankwest Financial, told the BBC.
One of the reasons for the market rally is that dairy farmers in Australia are taking advantage of the return of the market and are selling their stock for a lot less than the initial asking price.
While many investors are expecting dairy stocks to rise, it is important to remember that this is just the start of a long-term recovery in the dairy market.