In our discussions on Food and Processed food with Analyst Heather Jones this week, one of her top picks was the familiar company, Chiquita (CQB).
Starting with their famous bananas, pricing is currently very firm both in the US and overseas. She says that this reflects a more rational competitive environment, and a greater demand- made by a lack of supply by other competing fruits.
The weakness of the US dollar is another factor that is positive for Chiquita. For every penny move up in the euro, it means $5 million in annualized EBIT.
In terms of cost, the WTO ruling against the EU’s discrimnatory banana import trade regime, which could lead to significant cost saving in the future.
For the full Food and Processed food issue, including interviews with CEOs from a variety of food and processed food companies, and more stock picks, click here.
Top Pick in Alternative Beverages
September 20, 2007
Banking Pick Despite Doom and Gloom
October 25, 2007
Pick: CB Richard Ellis
October 30, 2007
Semiconductor Pick: Altera
December 20, 2007
Apparel Pick: Aeropostale
February 15, 2008
