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Chiquita Brands International Inc. Message Board

  • lance_boile lance_boile Aug 17, 2000 12:22 AM Flag

    This banana is a big LEMON!

    Do yourselves a favor.....go to the library and
    read the latest Value Line report on CQB from last

    If you're familiar with Value Line you'll know that
    their comment about CQB is as negative as they ever
    get: "We don't think Chiquita stock is acceptable for
    investment purposes..."

    Whoa! Usually they pull their
    punches and say things like, "Conservative investors may
    want to steer clear of these shares until there is
    evidence of a turnaround".

    Face it. The only thing
    this company has going for it is that cute little
    bimbo in the grass skirt. You're likely to have better
    luck going to Las Vegas and betting on black or red.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • flatline = dead money

      CQB can struggle
      along for years and avoid the creditors. But I would
      not call this a successful strategy. CQB's potential
      for an upturn rests with lobbying victories. However,
      few folks understand that the current system which
      limits imports into the EU also artificially props up
      prices. If all barriers came down (don't worry, they
      won't), market pricing could be a disaster. Couple that
      with a weak euro, then these guys would be in a

      There is simply too much fruit in the market and the
      Big 3 have given away their leverage to obtain higher
      pricing in the US with contract sales.

      Put your
      money elsewhere.

    • Everyone has their own system, no one can agree.
      Sounds like the WTO will be very busy with lawyers,
      consulatnts and economists for the next 2+ years.

      does not publish contingent obligations in specific
      locations. At 12/31/99, the had total contingencies related
      to loan guarantees, etc. of $112mm. Plus, the
      footnote for receivables states they have $63mm in grower
      advances. That is a total of $175mm in financial
      commitments to growers.

      Leon, you're pretty
      knowledgeable about DOL's sourcing and where they are getting
      fruit from independent growers. Given the financial
      disarray in Ecuador, some portion of these commitments
      must be in Ecuador.

    • Latin American banana producers fight European
      tariff proposals
      August 20, 2000 CNN
      Web posted
      at: 1:15 PM EDT (1715 GMT)

      (AP) -- Latin America's main banana-producing
      countries have agreed to take a unified stand against the
      most recent European proposals over the banana trade,
      calling them restrictive and unfair.

      Representatives from Costa Rica, Colombia, Ecuador, Honduras,
      Guatemala, Mexico, Venezuela, Nicaragua and Panama agreed at
      a meeting here Friday to "look for alternatives" to
      the European Union's tariff proposals, which
      producers contend favor Caribbean and African nations, said
      Panama's representative Joaquin Jacome.

      European Union is being forced to change its banana import
      rules by the World Trade Organization, which upheld
      complaints from the United States and Latin American
      countries that contended they were victims of

      Nine countries against 71 ACP countries.
      Who will be the winner?

      Value banana inventory
      at cost is pushing the losses forward.
      Where in
      the Dole's balance sheet do you find its financial
      commitments in Ecuador?

    • <EOM>

    • otherwise they might have to book losses in the
      event of an unexpected downturn in market pricing. But
      I assume this valuation is subject to management

      Leon, I know your views on Ecuador, but DOL will remain
      an exporter and they have a very large financial
      commitment there in the form of port facilities, farms and
      grower advances. I guarantee you that CQB will source
      fruit from Ecuador in the future (via ReyBanPac).
      Everyone loses money in the second half of the year
      regardless of fruit source.

    • in investment. Most analyst up grade and down
      grade after the fact. When I made hundreds of thousands
      of $$$ on Oracle....all the analyst were holding or
      selling....most all downgraded at that time....I jumped....I won.
      When EDS had 20 out of 21 anayst rating a buy I sold.
      One week later after 4 upgrades EDS dropped from $70
      to $31. I bought that week and made $125,000 months
      later...while people like Valueline were wiping there ass with
      their losses.

      Bottom line...go with name,
      product, book value, and bad marketindustry
      conditions....and most important go where no one else is!!!! If you
      don't love making money than invest in Microsoft,
      Nokia, XRX, Lucent, UIS, etc, etc..(those that Value
      Line had originally high marks in).

    • And that my friend is what makes a market!
      Willing buyers and willing sellers!Winners and losers. Do
      you listen to your stockbroker? Do you think it is
      wise to use investment advisors? Do we think Chiquita
      is out of the woods? No.

      Who said we were
      conservative investors? It is being bought on educated
      speculation to be a turn around. Five to seven years from now
      what do you think the Value-Line will say? Will you
      buy it then?

      This is not a prudent investment
      and we are not managing corporate retirement funds.
      We know that. We are buying the risk. We are also
      buying the rights to the reward if we are right about
      the turn around.I am the first to admit...this baby
      is flatlined. The cpr will be breaking back into
      Europe. Then wacth this stock jump!

      I purchased at
      these levels, and frankly so far my money has been as
      safe as if it were in a bank.Can you say that about
      Vegas? I believe there is little down side risk. Grab
      that value line and look at the book value.This is our
      alturnitive to IPO dotcoms for high returns. Got any of
      those? Gosh I hope not. We just aren't THAT

      If you had listened to the Value-Line you might have
      missed out on such bargins as Cataplliar Tractor,
      Chrysler, Bank of America, International Harvestor
      (Navastar), which all sold for under $5 and $10 per share.
      This is an investment stratagy we. Thanks for your
      concern though.

      And Bigfoot dances in the forest
      on the up tick day chanting "Bolongo! Bolongo!
      Bolongo! Bolongo! Bolongo!"

      • 1 Reply to bigfoot795
      • CQB's fixed assets have limited or no market
        value. Do you want some banana farms in Central America
        or some 43' refrigerated containers? Don't judge CQB
        on book value, but rather on the potential to
        generate TRUE free cash flow not some "adjusted" EBITDA
        number. Cash flow is dismal. By the way, if you want to
        judge the book value of any company, you need to look
        at their assumptions for depreciable lives. Check
        out CQB's assumptions for ships and containers and
        compare versus industry standards.