CQB takes over my green ideas and loads enough
munition to fight against the oligopoly of the
I invite you to the 'Eurep' meeting in Paris, next
week, where GAP rules will be presented. There we can
discuss if retailers are willing to pay bananas at
Contracts for next year are now
According to an anual report the PrA is
convertable through Feb 2001 into 2.6316 shares of common
provided the common exceeds $24.70 per share.
thereafter into a number of shares of capital stock (not
exceeding 10 shares) having a total market value of
The PrB shares also contain a similar phrase about
continuing to be convertable.
It's all very depressing. No, there's not enough
business for everyone. There is a world glut in bananas
and, though Dole and Chiquita have their irons in
other fires as well, it weighs heavily on their bottom
line. The best thing you can do for the cause is write
your Congressman to support countertariffs on European
goods; short of that, eat more bananas.
a proposal which will allow the US companies to
grow in the EU banana market. At the request of the
WTO, it asks the Council and the Parliament a mandate
to negotiate with the primary importers a license
distribution system and to abolish the specific country
quotas. This is still in line with what the US and 4
Latin American countries have asked. Now Ecuador,
Colombia and Costa Rica will have to show some sence for
Although there is no need to accept a due date of end
2005, the proposal merits to be accepted by all parties
Good Morning Livinonmargin:
me on this. When the protective status goes away,
does that signal the end of the bananna business in
the Dominican Republic? Aren't there some advantages
in moving toward a more open not protective trade
environment? When these barriers come down, won't there be
enough bananna business for everyone to make a living?
Did it ever occur to you people that the Domincan
Republic's biggest export is bananas and it is one of those
colonial outposts that is now benefitting from European
protectionism? I am long CQB but I am just putting away for
another 20 years. Hopefully by that time this whole
banana trade war will have been sorted out.
Anybody who is actually looking at buying any of
CQB should seriously look at the preferred before you
touch the common. While I can't make a persuasive
argument for CQB, it does appear that at current prices
the preferred offers the better return, both in the
potential for capital appreciation and
Any voting rights that the common carries over the
preferred is of course, irrelevant.
I agree with you about the preferred. I too shook
the preferred banana tree this week and a few bunches
fell my way. The return is very attractive and I hope
the downside is over. Only time will tell. I do a lot
of preferred investing and I liked the PrA stock
over the PrB because of the differences in the call
You mentioned you went with the
It looks like there was a blow out on
the PrA and a bottom of 19 is holding so far. If
interest rates step up next week and the price holds its'
19 bottom I may shake the tree for a little more.
With a 14+% cummulative return and a call potential of
$50 the only thing to fear is the company going bust,
which I don't think is in the cards.
out in the preferred may have also been a related
bottom sign for the common. There are a lot technical
indicators flashing for this company. The only problem is
they are not specific on the moves being up or
I like reading what Buck has to say also. His
comments are pretty good, but his secondary presence as an
indicator is also something to watch. Keep up the comments