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Fresh Del Monte Produce Inc. Message Board

  • Emel_ Emel_ Mar 4, 2010 1:57 PM Flag

    Recent Weakness can be traced to (Doh!)le IPO

    I'm not referring to the last few days. I am referring to the last four months.

    On October 21, Fresh Del Monte hit its current 52 week high of $24.77 and was trending higher with the market. Everything was fine in banana land. Then along comes Dole IPO. Expected pricing was at $15, but it was priced well below that at $12.50 on October 23. And since has traded even lower. Fresh Del Monte fell also 10%+ as Dole priced.

    So basically, the (Doh!)le IPO screwed the banana industry. Since they are the industry undisputed leader (based on revenue) Dole's very weak pricing caused the competitors to also be looked upon suspiciously. As far as I can tell there has been no direct bad news from FDP to account for the weakness. (Except arguably the lack of a buyback.) So Dole is to blame.

    As far as the Dole pricing, I tend to agree they should be weak. I considered buying, but just couldn't get past the balance sheet. Plus, has anyone noticed their last report they never even reported a bottom line #? They just stopped at EBIT. No balance sheet update. Nothing. Says on the company site to wait until April 2 SEC yearly filing to get the #s.

    Will someone remind them they are not private anymore?

    But alas, even though I passed on Dole, I guess I do have an indirect piece of Dole with Fresh Del Monte. Eventually there might be a disconnect between the two, but for now, we're indirectly stuck to (Doh!)le.

    So let's hope for better days at Dole. Pfffffffft.

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