Over the past 8 years:
-The company has averaged 17% ROE.
-Shareholders tangible equity grown from $7 to $18 per share
-Free cash flow has grown to $4 per share
-Demonstrated successful integration of acquisitions
As of today:
-Debt to equity = .04
-Current ratio = 1.65
I'm genuinely interested in others' perspectives about "what's wrong with this picture". To me it looks like a very well managed company that is producing terrific value for shareholders. Selling for a P/E of 9!
EU importation regulations
The EU has recently obtained a mandate from its member states to begin negotiations with relevant parties on a proposal to replace the existing system of import regulations, based on tariffs and quotas, with a tariff only system no later than 1 January 2006. These negotiations are likely to be protracted, with the EU and ACP producers requiring a high tariff on third country imports, while
the producers in these third countries are seeking a reduction in the existing tariff level. Particularly in light of the likely difficulties reconciling these conflicting positions, Fyffes, and the vast majority
of the industry, is supporting a continuation of the current market structures.
The importation quota was increased as a result of EU enlargement on 1 May 2004 and the impact of this has been broadly neutral for Fyffes.
Last week, the Costa Rican banana association CORBANA published a personal version of statistics of the world banana export for the first half-year of the current year:
puesto paises exportadores
mln.cajas H1-2004 H1-2003 %
1 ecuador 114
2 costa rica 51
3 filipinas 46
4 colombia 35
5 guatemala 35
6 honduras 14
total 318 322 -1.24%
1 chiquita 69
2 dole 67
3 del monte 50
4 noboa 23
puesto merc int
mln.cajas H1-2004 H1-2003 %
1 EEUU 104 106 -1.89%
2 UE 77 80 -3.75%
3 mediter 71 73 -2.74%
4 japan 25 27 -7.41%
5 rusia 22 15 46.67%
6 china 7 8 -12.50%
7 lower balt 5 7 -28.57%
I am not long here, you should not be either. I don't buy or sell this company based on one seasons production. If you want to address this information to someone, then talk to prodbuy. Ciao, talk to you seriously soon.
"So the case to short should be very strong, or there is some sort of gimmick around these shorted shares, implying some long term holders...
Anyway, I assume nobody could answer my question outside the shorts themselves, of course.
There is a lawsuit from the previous owners who claim that Mexico was bribed to sell FDP for a low price. The suit is from some gangsters who are linked to the drug trade, bank fraud and money laundering. They and the people like them probably thought they could make a quick buck shorting on the news of the suit. They didn't get a chance to cover at a profit. Many of the suits have been dismissed and the last one in Miami could be soon. I'm sure the DEA/FBI/CIA will attend the trial and hope the plaintiffs show up in person.