the two largest banana consumers in the world, china and india, look set to import bananas to meet their nation's needs. this should bode well for DOLE as central america banana exports have kept global supply demand largely in balance. assuming DOLE doesn't overpay for the farms, these investments in new banana farms could pay off quite nicely in years to come.
Listening to the investor call it was interesting to hear DOLE say they would be paying off all debt as opposed to their investor presentation last september where they suggested a debt level of approximately 250mn of debt post transaction. not sure where this extra paydown came from. as they mentioned their yen hedges made about 135mn over the past 2 quarters.
Listening to the call i also think DOLE is lowballing the price on its oahu land value. 10,000 an acre seems way way too low. just spend a little time on zillow and check out oahu propeerty prices. perhaps the land could be worth upwards of 300-400 million dollars.
just my two cents but this sell off seems absurd to me.