Fresh Del Monte Produce, Inc. (NYSE:FDP)

ValuMo (43.19) Submitted: 9/24/2007 11:04:32 PM : Start Price: $28.32 FDP Score: -7.97

leveraged and cyclical. Should cycle uo with inflation.

Wifeb123 (95.48) Submitted: 7/27/2007 2:34:43 PM : Start Price: $22.46 FDP Score: -11.30

Corrupt CEO who enjoys manipulating the shareholders to benefit his friends and family

xdogg (< 20) Submitted: 7/27/2007 1:25:40 PM : Start Price: $22.78 FDP Score: -9.68

Over 50% of shares controlled by the CEO. Yikes.

Bleeding cash all over the place. Yikes yikes.

P/E ratio of 1465? Yikes yikes yikes!!!

wild0bill (57.78) Submitted: 6/29/2007 12:24:21 PM : Start Price: $24.73 FDP Score: +3.67

IT WAS GOOD TO ME ONCES, GIVE IT ANOTHER TRY

blissfulone (30.69) Submitted: 6/20/2007 10:49:45 PM : Start Price: $22.57 FDP Score: -13.11

Bruised fruit...bad corporate stewardship, questionable management, commodity, and a tough industry.

Hochizen (41.85) Submitted: 5/22/2007 10:39:19 AM : Start Price: $23.46 FDP Score: +9.71

decent growth (for industry) at a reasonable price, and a nice defensive move given the market rise. It has had a 20% runup in the last month, so those into market timing may want to try to find a better entry point; but for those who don't watch every tick this is a fine time to buy methinks at 1.28 times book value. Growth and value, my favorite!

StuckInTheMiddle (< 20) Submitted: 4/25/2007 7:41:38 PM : Start Price: $19.24 FDP Score: -29.94

The last time they looked like they were going to make some progress, I ended up very happy I refrained from entering because about the time I began to think it might work they began to slide again.

Buhlzi (< 20) Submitted: 4/18/2007 9:00:42 AM : Start Price: $19.09 FDP Score: +29.05

This stock elevated nicely from a bottoming pattern and is now consolidating. This stock has name recognition as well consumer trending towards eating healthier.

lcsystem (35.94) Submitted: 4/15/2007 6:35:06 PM : Start Price: $19.41 FDP Score: -26.48

up since Jan to near 52wk high, horrible q4, more downside than up.

NetscribeConsGds (95.87) Submitted: 2/12/2007 7:26:59 AM : Start Price: $15.56 FDP Score: -55.09

Fresh Del Monte Produce (FDP) are one of the world’s leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, the Middle East and Africa. The company derives bulk of its revenues from North America (48%) followed by Europe (37%) and Asia-Pacific (12%).

The packaged food industry is extremely competitive and the company’s pricing is highly influenced by its major raw materials like pineapple and banana. The pineapple pricing has shot up over the past several years on account of severe supply disruption. As FDP is passing over the price to consumers, its volumes are getting affected. The company has already been struggling in the European banana market, which has further aggravated on the basis of EU regulatory changes, thereby intensifying price competition in that market.

On the operational front, gross margins have been under pressure as a result of inefficiencies due to employee turnover and the increasing production cost. Also the company’s net profit margins have been worsening for the past three years. Moreover, Fresh Del Monte’s canned pineapple products in certain European countries had to be withdrawn as a result of contamination, which confirmed through investigation. It has negatively impacted company’s gross margins. Future operations of the company in Europe may get affected as their reputation in this region has been tarnished.

The company, in order to reclaim normalcy over its margins has ceased its pineapple planting operations in Hawaii. But the quest for lower cost pineapple market would be a long-term concern for the firm. With two of its major raw material costs, pineapple and banana, eroding its profits, it looks Fresh Del Monte is a bitter dessert for its investors.