I don’t know what metrics BB&T is using to make a relative valuation call, but as a multiple of cash flow and earnings, FDP, DOLE and CQB are similarly valued. Based on a superior balance sheet, I would think FDP deserves a higher multiple.
Regarding costs, SG&A and taxes were up. SG&A costs were up $4M due to increased advertising in England, and taxes increased by $5M. FDP’s SG&A costs are less than DOLE’s and CQB’s; FDP has better operating margins. Perhaps I am missing something, but I don’t see BB&T’s problem.