Dole Food Company, Inc. (DOLE) Gets a Big Raspberry

The difference is Chiquita Brands International Inc (NYSE:CQB)’s stock is up 25% in 2013 and has nearly doubled over the past year, even as it searches for a new CEO. Dole Food Company, Inc. (NYSE:DOLE)’s stock, on the other hand has lost 13% of its value this year, albeit much of it because of its latest shenanigans. Yet Fresh Del Monte Produce Inc (NYSE:FDP) has realized a more modest gain of 5%, and its shares are up 17% year over year.

Sipping strawberry daiquiris
Economist John Maynard Keynes once remarked: “When the facts change, I change my mind. What do you do, sir?” And a management team ought to be encouraged to adapt quickly when new facts present themselves. But in this instance, it can’t be said there was some sea change in outlook that caused them to go from wanting to spending $200 million on their stock to spending $165 million on new boats instead.

They knew they had unproductive land; they knew their strawberry business was suffering, as the company had reported lower pricing and earnings in its quarterly report; and they surely knew the age of their fleet beforehand. While the chance to buy new ships may indeed be opportune given conditions in that industry, didn’t they investigate that option first?

Dole Food Company, Inc. (NYSE:DOLE)’s management has given investors a taste of their biggest fear: The company doesn’t know what it’s doing. Stumbling from one idea to the next makes it appear it has no plan in place and leaves the market to wonder if the shipbuilding program will be canceled next month, when the next new thing pops into management’s head.

If that were to happen, investors might not be wrong for thinking executives aren’t just fruity, but rather that they’re nuts!

The article Dole Foods Gets a Big Raspberry originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned.

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