Chiquita Brands International, Inc. (NYSE:CQB)

Insider Activity, Food and technology will be coveted as we go further into the 21st century

DEC

At a 2 year low, trading at $9.58 currently, and a book value per share of :$19.36. Although profit margins are only 2.31%, CQB CEO Fernando Aguirre has recently purchased 133,000 ($1.2 million) shares, and he has a great track record of timing market bottoms based on historical trading data from InsiderScore, a firm that analyzes executive transactions. Go bananas.

I'm going banana for this stock. Why this stock isn't closer to $12 or more is beyond my imagination. Own in real life.

I love bananas.

Food prices are up, and they have good jokes on there labels, always entertaining.

value

4.3% insiders.
1 in europe and 2 in US.
Paying down debt.
Low-low P/E.

Recent thumb up picks have slipped on this banana peel, but down 6% looks like a buy to me. We will see.

I think that the CQB CEO will turn things around after his Undercover Boss experience a few weeks ago. I have pretty good hopes for CQB and their CEO.

Here's the buy rec:

http://www.fool.com/investing/small-cap/2010/12/28/rising-star-buy-chiquita-brands.aspx?source=irnsitlnk0000001

everyone goes for bananas

Unusually high call volume at $25 for 3/10

Rebound play from my previously top pick. Getting "nanners" back in my portfolio.

nope - I'm keeping it to myself

Growth-adjusted PE is around 2.5x the industry average.

talking frog told me so

The primary revenue generator here is bananas. Are people going to stop eating bananas during a recession? NO. Will people opt for alternatives to bagged salad products? Perhaps, but CQB is eliminating vendors who are not willing to absorb their price increases. If you cannot sell it for a profit, why sell it at all? Plus, this company generates a healthy amount of cash flow - which could see some major improvement if current EU tariffs are reduced. They also do not have any major debt maturities to repay until 2014. Management alluded to '09 earnings being in the neighborhood of $1.12 (better than '08). And this does not factor in any EU tariff reductions. My conservative DCF model puts their fair value at about $15. Once investors pull their heads out of the sand, they will realize this is a 3 to 4 bagger waiting to happen. This stock was trading at $15 not more than 6 months ago and the business has not materially changed since then.

Growing world population, increasing wealth in developing countries will add to demand for bananas and other helathy diet fruits.