Tell me if I'm assessing this wrong, but the EU has signed off on a reversion to 1993 quotas despite objections by Dole and Equador. This renewed formula will begin July 1, stay in effect until 2006 and benefits Chiquita greatly. The company will therefore avoid bankruptcy and start showing strong earnings as of the 3rd quarter.Wasn't 1993 when Chiquita was selling for around $50 a share?
Go check your charts. CQB hit 50 in summer 91. Since then a lot has happened - like Ecuador going crazy with new plantings. BY 1993 was back in 20s. EU deal will get get them more share but their EU business is in trouble - Germany a diasaster thanks to their German "customer".
2001 EU will still see FX problems. Euro will remain under pressure as "underground" economy buys dollars instead of converting their local currency into Euros (Euro use mandated 1/1/02).
the reference period is 94-96 and then only a percentage of that market share. CQB has stated that they will continue to seek to restructure their debt even after the agreement was reached with the EU.