Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Investors in Dole Food
So what: But has the market gone totally bananas? So far as I can tell, there's no earthly reason for Dole shares to be popping this morning. No earnings being reported. No press releases from management. Not even an article in the news feeds that could explain this price spike.
Now what: Your guess is as good as mine, Fools. Look at the numbers: Dole is unprofitable for the past 12-month period. It pays no dividend. It's got no free cash flow whatsoever. Its forward P/E ratio of 12 certainly looks low enough … until you notice that analysts don't expect Dole to grow even 10% per year over the next five years.
Long story short, I see no reason to be long this stock. My advice: If you own Dole today, peel off a profit -- and throw this stock away.
Disagree? This there's more to the Dole story than meets the eye? Add it to your Watchlist and find out if you're right.