The share that just never moved when the market did anything goes Bananas. I only bought this share to wind up my mates at my investment strategy. You'll buy anything they said. So I went and bought bananas for a bit of pub banter! 477% profit since Jan 2012. Still love their bananas. Much more yellow than competiors. Also a highly ethical company. http://www.ethicalconsumer.org/buyersguides/food/bananas.aspx
Still don't know how anyone can eat Tesco's bananas they are still dreadful. They've even started calling their "bananas to ripen" as they are just not ready. Shame I only had £500 in it. Well done to all holders.
2016 The Great Irish Share Valuation Project (Part I):
Company: Fyffes (FFY:ID)
Last TGISVP Post: Here
Market Cap: EUR 477 M
Price: EUR 1.605
Fyffes bounced back nicely in the past year & a half, after being dumped at the altar by Chiquita shareholders (who voted instead for a Cutrale-Safra cash offer). While revenue was basically unchanged in 2014, adjusted EBITA/diluted EPS jumped 23% & 27% respectively. Growth continued in 2015, with revenue up 12%, while adjusted EBITA/diluted EPS were up another 14%. This was capped in early April by the C$145 million acquisition of Highline Produce, Canadas largest mushroom producer.
Highlines revenue wasnt confirmed, so were forced to rely on Fyffes current 1.2 billion revenue. Adjusted EBITA margin is currently 3.7%, but incorporating Highlines pro-forma C$18 million EBITDA figure (Id estimate EBITA equivalent to be C$14.7 million), this should reach 4.6%. Unfortunately, operating FCFs averaged just 30% of adjusted EBITA in the last 3 years equivalent to a mere 1.4% margin. Lets average the two, to arrive at a 3.0% average margin, which deserves a 0.275 P/S multiple. Based on this, acquisition funding will absorb the majority of Fyffes current cash & (prudent) debt capacity. The Highline acquisitions also pretty accretive, which should help maintain current earnings momentum, so a 14.0 P/E ratio makes sense here:
(EUR 0.1273 Adj Dil EPS * 14.0 P/E + 1,223 M Rev * 0.275 P/S / 297 M Shares) / 2 = EUR 1.46
Fyffes looks marginally over-valued to me but might still look cheap to growth investors, who probably dont care about the consistent & substantial shortfall in cash earnings. However, the significant increase in debt may now place greater emphasis on cash generation, which might potentially conflict with managements desire to continue the current earnings momentum lets wait & see how they square that circle. Meanwhile, lets not forget, a potential re-merger with Total Produce (TOT:ID) is still the obvious elephant in the room now more than ever, after the failure of the Chiquita merger
Price Target: EUR 1.46
For related links/graphs/files, and more TGISVP analyses/price targets: Google the Wexboy investment blog.
Frightening to see when i checked have held these since 1987.
not sure of profit as brought @70p
And got same amount amount of TOT and some balmoral along the way.
Think there was always a DIV.
Guess it must of beat saving acc interest.
But much more risk and time consuming.
"I keep an eye on which shares are hitting new highs, and in the past few weeks I've seen Fyffes (LSE:FFY) consistently reaching new levels. As I write, its shares are up 46% over the past 12 months to 107p, and they've more than trebled since ..."
Sure you know this by now: http://www.bilplc.com/financial_highlights
Obviously I dont look at this board very often,although I did think it was more than once in 2 months,basically the Balmoral shares have been climbing this year and that means 0.01 to 0.016 with Davy Stockbrokers,grey market.Re value,I dont think a Dublin Landlord would remember anyone spending the average holding on a monday afternoon.
"It's no surprise that this year has seen a surge in mergers and acquisitions (M&A). Companies have suddenly found themselves with healthy balance sheets after years of trimming the fat post the financial crisis. Now, they either have a sizeable ..."
This appears to be an all-share merger of near equals (49% FYF, 51% Chiquita). The HQ will be in Dublin, but the shares should be listed in Dublin, New York and London. This is provided there are no further interlopers. Merger will help combat the threat of TR4. Could this now be a buying opportunity? The new company will be the largest player in the world bana market.
My understanding is that you will receive shares in the new entity Chiquita Fyffes which will be listed in NY. If you don't fancy that, then sell for cash in the market before the merger completes. Make sure the registrar has an up-to-date postal address for you, otherwise you won't receive the offer documents relating to your certs.
For what it's worth I had this in my SIPP, ignoring the US listing implications I sold out completely today primarily as it's now trading on a fantastic multiple far greater than I ever expected that a fruit trader could possibly be valued. At 65p I was attracted by an ok divi so time to move on. Although I have to say it's good to make some cash from a non-LKH approved stock for once!
I don't know whether one can hold USA stocks in Blighty pension plans. If you can I'd probably hold my shares in ChiquitaFyffes .... damn stupid name; they need summat snappier ... like United Fruit LOL.
I certainly can't see a counter offer coming; no-one else can offer the synergy that Chiquita can, but I hasten to add that I'm not an expert in the recondite world of bananas, melons and pineapples, hard though that may be for some to believe.
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