FFY about to break out....which way???

Fyffes (Buy)

Murdoch’s bid accepted by Dole Dole’s CEO David Murdoch has revised upwards his offer for the company from $29.5/share to $33.5/share, representing a 37% premium on the pre-bid price. The revised offer has been accepted by the company. The offer implies that Fyffes is undervalued and we re-iterate our Buy recommendation as: (i) Dole’s price values the company on an EV/EBITDA of 6.1x estimated 2002 earnings, which compares with just 4x for Fyffes on a similar basis (adjusting upwards the EBITDA to exclude minorities). An EV/EBITDA for Fyffes of 6.1x would conservatively imply a share price of euro1.69 {calculated as (6.1 x 66.2 +179) / 345.5} or one third above its current level. Comparative valuations could actually be higher again when allowance is made for lower tax rates at Fyffes and higher cash from future disposal of non-core assets. (ii) Fyffes’ trading statement yesterday confirmed that it is on target to meet market expectations for 2002; and, (iii) recent weeks have seen a good improvement in banana prices and a weaker dollar, both of which are positive for margins.

From Site www.finfacts.ie then irish daily report on the left hand side. This comes from article on 19th