$DOLE
All Aboard the Banana Train
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Today, I will be completing my first supporter-exclusive deep-dive on DOLE 0.00%↑. Therein, I will discuss the overall attractiveness of the resilient space the company operates within, provide a succinct overview of the company’s business, and delve into an analysis of the possible path function I am pondering with regards to the company’s future. All monetary values depicted in figures are in millions of USD.
Disclaimer: The information and research contained herein is all my own opinion and should not be used as a substitute for proper due diligence. Please consult your financial advisor and evaluate your financial circumstances before making any investment decisions.
Let’s get started.
Maslow’s hierarchy of needs provides an eerily accurate depiction of the human condition. Start at the bottom of the pyramid and you have needs that are inherent to survival; move upwards and things shift from essential to niceties of sorts, factors that may improve one’s life but are not needed for the preservation of it:
Businesses that cater towards the bottom two sections of the pyramid interest me for a few reasons. Firstly, companies that cater towards basic physiological needs tend to have a source of inherent resiliency embedded within their operations. Despite markets exhibiting constant cyclical behavior, businesses that offer people access to the essentials, particularly food, are less prone to severe fluctuations in demand, if they are managed correctly. Secondly, the structure of the modern investment industry often leaves these stories behind. Over the last few decades, arguably a result of relaxing credit conditions and an ever-expanding desire to take on risk in order to meet return hurdles, finance has become increasingly narrative driven. Whether that be a result of the desire to justify positions in companies with financial profiles that would not survive in an environment where the cost of money goes up, or through an increase in the rate of technological innovation that has resulted in fraudulent and deceiving business models rising proportionally as well, there seems to be a correlation that exists between share price appreciation and the ability for management to successfully drive narrative. As a result, certain sectors that have failed to engage in successful storytelling have arguably been left behind, and with this neglect opportunity has arisen.
I believe this accurately conveys the position that Dole finds themselves in at the moment…