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Fresh Del Monte Produce Inc. Message Board

  • claudiofahmy claudiofahmy Mar 7, 2010 9:45 PM Flag

    Where are the problems by FDP?

    I am just starting to learn more about FDP, and the company so far looks very good to me.
    They have a low P/E, a low P/B and low debt.
    Is there something that I should be aware of before buying the stock?



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    • Oh, and another thing, the analyst at BB&T who downgraded FDP recently.. I think her name is Heather Jones... Don't listen to her. She's an idiot.

    • I have owned and followed this stock for about 7 years. I have always thought this company is undervalued. There don't seem to be any major problems, except they seem reluctant to grow, which is why they have a low P/E ratio in my view.

      Occasionally they take on debt, and then they pay it off over the next few years rather than use their leverage to expand. At one point they paid a dividend, but I believe their debt covenants don't allow payment of a dividend anymore. Maybe in a couple of years.

      Some on this board feel that the majority shareholder and CEO is a poor manager.

      It does seem that whenever the company announces a new initiative, it doesn't go too well. (for example when they started selling fruit in Wendy's restaurants, and I believe their acquisition in Europe went worse than expected). But these things are in the past, and as far as I know there are no current headwinds.

      Hope this perspective helps.


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