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: Shares of fruit and vegetable king Dole Food
So what: The stock has been pounded during the past year over its European exposure, but today's second-quarter beat (adjusted EPS of $0.80 versus the consensus of $0.72), coupled with the possibility that Dole may sell one or more of its businesses, offers investors several turnaround catalysts to be excited about. While unfavorable currency shifts offset the restructuring strides it has made in its Europe operations, it's clear that management continues to take a highly proactive approach on both the operational and strategic front.
Now what: Management said that it has hired Deutsche Bank Securities and Wells Fargo Securities to assist it in the strategic review process, and that they are currently in talks with third parties who are interested in some of their segments. "We are continuing to look at a wide variety of potential alternatives as part of the strategic review of our businesses," President and CEO David DeLorenzo said. "This review continues to be a company priority in our efforts to enhance shareholder value." With the stock still well off its 52-week high and trading at a cheapish P/E of 7, today's double-digit pop might just be the start of a prolonged comeback.
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