How can a CEO let a company get in this situation in only 3.5 years. Coming out of banruptcy with a clean balance sheet, to be in so much debt and to need a reorg., what is going on. How did we get in this position, One Answer Fernando.... And did you get a look at his merry men of idiots, the ones who will be running the company. Total banana and fresh fruit business knowledge and experience is now depicted in minutes and hours. Time to sell because the bottom will drop out after 4th Q.
you do know how the balance sheet got levered up dont you? It was the fresh express acquisition. The restructuring of the cost base is only a partial result of weakness in the salad business, which was a good move strategically to make the underlying business less volatile and dependent purely on banana supply/demand market dynamic. The restructring has been called on for most of the sell side analysts that cover this stock due to the inefficient cost structure relative to their peers, and the company has finally begun to listen to wall street and try to deliver. With that said, i esxpect continuing weakness in the salad but very strong performance in the banana segment. Also, in the next 6 months or so I would expect a convergence in performance of fdp and cqb, either fdp falling and cqb rising, or just an accelerated rise in cqb's share price. No reason why both shouldnt move in the same direction at a similar pace...
"...either fdp falling and cqb rising, or just an accelerated rise in cqb's share price. No reason why both shouldnt move in the same direction at a similar pace... "
the reason is that fdp makes a profit, cqb not. i expect another really bad report in nov. maybe they REALLY manage to improve their cost structure - then you could be right. i hope so, i also bet on this, but do not bet a lot.
I believe we all know how CQB got debt ridden (FE), the question is why. Good management & quality leadership by a competent CEO can avoid making bad decisions & putting the company at risk. Fernando has no experience as a CEO, his management & leadership styles were tested once again and the condition of the company tells the story. He failed at P&G and failed here at CQB. Now his strategy is to make everyone else the scapegoat, place blame elsewhere. The TRUE sign of a weak leader. And as Condor mentioned, look who he picks as his leadership team, do you believe it. Two years at the very most before we see bankruptcy again.