The press release says that the worst of the strawberry problem was in the first quarter, which has already been reported. That is already in the stock.
Also, the board is saying the new ships will be a very good investment, cutting costs, and even better for stockholders than a stock buyback. As farmland is liquidated and as the old ships are sold, then buybacks are again possible.
and remember their public announcement of the shareholder call said they would discuss a stock buybackm then the guy doing the presentation said that was not in the agenda and the next day they announce one. This managment is the most clueless i have seen in a while.
agree that the news wasn't as terrible as the drop in price seems to reflect. I bought in the low 10s this morning, not even knowing fully why the stock was dropping. By the time I figured it out, the price had recovered to around 10.40 where it stayed most of the day. In all honesty, I don't see DOLE as a double in the forseeable future. I have been buying dole in the low 10s/high 9s and selling in the high 10s/low 11s during the last three months and have been making good money. I see this heading back up to the 11s in the next week or two and the I will probably sell most of my shares.
DOLE has something rare: a clean slate. The sale to Itochu provides DOLE with a fantastic opportunity to become a lean money making machine. However, the sale to Itochu also made DOLE extremely susceptible to commodity pricing, because after all, the company's only products now are essentially commodities. The DOLE brand is an overlooked asset in itself, and combined with all the land, the company is trading for or under book value.
Like I said, I really don't think DOLE will be moving much higher anytime soon, but I also can't see it moving much lower. BOTTOM LINE: I'm a buyer at these levels, but a seller at just a dollar or two higher. Earnings could be ugly again.