Stonk Research

3.12 Dole

With a food shortage, buying an undervalued fruit + vegetables producer might make sense at the right price.

Fresh produce is vulnerable to adverse weather conditions, including windstorms, floods, drought and temperature extremes, which are quite common but difficult to predict, the effects of which may be influenced and intensified by ongoing global climate change. Unfavorable growing conditions can reduce both crop size and crop quality. This risk is particularly acute with respect to regions or countries from which we source a significant percentage of our products. In extreme cases, entire harvests may be lost in some geographic areas. In addition, weather patterns may affect consumer demand, creating shortages in key products. For example, we experience an increased demand for salads during summer months and prolonged warm weather may stress our ability to meet such demand. Conversely, extended bouts of cold or other inclement weather may depress such demand, leading to wasted product. Adverse weather may also impact our supply chains, preventing us from procuring supplies necessary to the running of our operations and delivering our products to our customers. Outsized weather events and natural disasters may prolong or worsen such impacts. For example, we were recently adversely impacted by hurricanes in Honduras and unseasonably significant rainfall in Chile. Such adverse conditions can increase costs, decrease revenue and lead to additional charges to earnings, which may have an adverse effect on our business, financial condition and results of operations

  • • natural disasters, climet change

  • • drought, losing entire harvests + pests

  • • have gmos in some cases

  • • argiculture policies like idiot trudeau reducing fertilizer usaage

  • • lots of competition in this space, do they have a competitive advantage

With vertical integration, they are better positioned to handle supply chain disruptions, worry about rising interest rates with 1.3 billion net debt. Water optimization usage, good to know they at least give lip service to water usage. Interesting they are using blockchain technology.

They have their own ships, limiting damage from rising shipping costs, with the rising dollar, they lose money.