% | $
Quotes you view appear here for quick access.

Fresh Del Monte Produce Inc. Message Board

  • robertinmiami40 robertinmiami40 Jun 27, 2006 2:43 PM Flag

    Large move

    Anyone knows what is driving this move???

    Thanks for your input.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Yesterday's note from BB&T Capital:

      "Tariff may be reconsidered. Last Friday, Reuters reported that the EU banana import
      tariff may be reconsidered at meetings in Geneva this week as part of larger tariff
      negotiations. Effective January 1 this year, bananas imported from Latin America are
      subject to a tariff of �176/metric ton (2,200 pounds) 0r �3.20/40-pound box. We believe
      that represents a net cost increase of $77M to Chiquita from 2005, assuming a $1.25
      USD/Euro exchange rate. According to our best available information, we estimate the
      current tariff has been a net wash for Fresh Del Monte.
      � Costs may be lowered, potentially significantly. Amid threats of WTO challenges
      from various Central American nations, the EU is reportedly reconsidering the current tariff,
      which is not much lower than the �187 figure the WTO had previously rejected. We
      understand the debate is centered upon the �bound� rate, which is a fixed rate. The
      European Commission had previously proposed a �230 and �187 bound tariff, which were
      both separately rejected by the WTO. It then unilaterally imposed the �176 tariff late last
      year. The rate may be reconsidered this week. There are significant potential implications.
      Within the Doha round, nations are negotiating trade policy, encompassing many programs,
      including agriculture. Significant reductions of certain tariffs are being considered by the
      U.S. and EU. If a deal is struck, some tariffs reportedly could be cut substantially.
      According to Reuters, bananas are in the second band of products and if there is a deal, the
      bound rate may be cut by 45%. If that happens, the important question is the length
      of the phase-in period. Our sources tell us it could take years.
      � Impact to multinationals debatable. Clearly, any reduction in the tariff would be
      beneficial to costs and we believe would likely be a significant psychological positive for
      Chiquita and Fresh Del Monte, particularly the former. However, the ultimate benefit to
      earnings is not clear for two reasons. The impact would be heavily dependent on the timing
      of the cut and phase-in period. More importantly, the reduction in tariff would lower a key
      barrier to entry and could consequently result in more volume into the EU, which may
      depress pricing further. In our opinion, an announced reduction in the tariff would likely
      boost the stocks but the boost to earnings would be less sure."

      If they do lower the rate later this week, be ready for the stock to easily go over 20 in the short term...

    • Ask Leonmusa (Lion Banana) and DCmorlando who picks up after the Lion Banana.

      • 1 Reply to marieldon2001
      • Stock Exchange Announcements
        Trading Statement 29 June 2006
        Fyffes� performance in line with expectations
        In a pre-close statement issued to the Stock Exchange today, ahead of its interim results for 2006 due for release in early September, Fyffes plc said:
        �The Group�s expectations of its performance for the full year 2006 remain in line with its previous announcements in this regard. Consistent with the normal seasonality of the business, results will be weighted towards the first half of the year. The adjusted profit before tax for the six months to 30 June 2006 is expected to be in the range of �37 million to �39 million.
        Fyffes remains focused on enhancing shareholder value by developing its business, in particular through further strategic acquisitions and alliances. The Group has invested in excess of �20 million, including debt acquired, on a number of acquisitions in the year to date.�

    • Some one seems to think something is up. Check out above average buying of call options for 17.5 strike for July and August.

61.05-0.08(-0.13%)10:04 AMEDT