Chiquita Brands (CQB), the world's most famous banana grower, emerged from bankruptcy years ago, yet the company still has little in the way of Wall Street analyst coverage. The stock, therefore, flies under the radar, escaping the attention of investors, says Knudsen, whose fund owned about 885,000 shares of Chiquita as of March 31, according to Passport's latest quarterly filing.
He points to the stock's cheapness (a forward price-to-earnings multiple of 7.22, based on 2012 estimates) and to the notion that the banana industry may be poised for a rebound after a difficult period. With banana quotas in Europe lifted after 15 years, and with tight supplies in South America, the supply-demand balance looks supportive of banana prices, he says.
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