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Fresh Del Monte Produce Inc. Message Board

  • gabrielmoussali gabrielmoussali Oct 3, 2008 2:55 PM Flag

    FDP: sharp decline (below 20)

    Hey, can anyone explain what happened this week with FDP, the DOW and others major indexes have been doing quite well, I've been checking other stocks and they all look good specially today where most of the stocks are getting interesting returns, FDP is totally not following the market trend, this week it's been losing more than $1 dollar everyday, what's happening?? People have been predicting a target price of $28, we are actually far from that. I bought the stock at 21.70 and did not sell at the right time (was aiming for $25), can anyone give some insight and explain more about the present situation, thank you,

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    • Mutual Fund Redemptions... There are a few funds that hold large positions in FDP. These same funds are down significantly in the past 2 weeks, so I expect investors are selling those funds and want their money. As a result, those fund managers need to sell their holdings in order to return $$$ to those clients. I'll see if I can get you the names of those mutual funds.

      The good news is that FDP's Book Value is around $23, so any price below that is a real bargain. Buy more since FDP cycles between $20 and $25 consistently. Buy on the dips and sell on the pops. Easy money to be made on FDP. Great balance sheet too!

      - Sky

      • 1 Reply to sky_highlites
      • May go down even more with the fines. Looks like the Europeans do not like US companies. Short this dog down to $5

        "The European Commission has found that banana importers Chiquita (CQB.N: Quote,
        Profile, Research, Stock Buzz), Dole and Weichert participated in a
        cartel between 2000 and 2002. Chiquita was not fined as it provided information
        to the Commission that enabled it to open its investigation," the EU
        executive said in a statement.

        "Del Monte DLMCF.PK is held jointly and severally liable for the payment of the
        fine imposed on Weichert as it controlled Weichert at the time of the
        infringement," the statement said.

        California-based Dole was fined 45.6 million euros, with U.S. company Del Monte
        Inc and German Weichert jointly accountable for 14.7 million euros of
        the fine.

        The cartel coordinated their quotation prices for bananas in Austria, Belgium,
        Denmark, Finland, Germany, Luxembourg, the Netherlands and Sweden,
        where the combined retail value of bananas sold in 2002 amounted to around 2.5
        billion euros.

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