Based on my belief, FDP is below book value due to overall market malaise, commodity beat-down, and the fact that it is a small cap which tends to have wide swings up and down. Too far both ways.
Best thing to do:
Historically speaking, there is no better and safer model than to buy stocks trading at or below book value. As long as the industry is sound (which last time I checked food was even in recession/depression) then it will eventually recover smartly. Very possibly might go down further in the short term, but patience will win out.
That being said, FDP is one of my largest food stock book value specials in my portfolio.
I keep selling the $22.50 call contracts month after month for a nice premium, only to have them expire and keep the stock. No complaints at all. :)
VLO is another company that trades well below its book value. Refiners have taken a beating over the past few months, but given VLO's strong balance sheet and the U.S. need to convert crude oil into gas, jet fuel, diesel, etc., I don't see VLO's business slowing down. Book value for VLO is $35, yet it trades at $32. Very nice option premiums on the call contracts as well as a tidy dividend.
Please keep me posted of any other Below Book Value gems you come across. Thanks for your reply.