My argument in favor of DOLE's stock.

U.S government is cracking down on ultra-processed food. Incentives are being set to eat healthier. This may lead to increased demand for fresh produce from companies like DOLE PLC. In this article, I present three arguments in-favor of DOLE's stock:

• The market for fresh produce may grow which could reflect in Dole's revenues.
• Dole has a shareholder equity greater than its market capitalization, including land in crucial regions.
• The company has strong fundamentals, including consistent profits, cash flow, and shareholder's equity.

These criteria are not exhaustive, but I use these as the heavyweights of my argument.

The market for fresh produce may grow. This growth can impact Dole's revenues positively.

This assumption is based on the U.S Government crackdown on ultra-processed food. According to Wall Street Journal, there is friction between ultra-processed food manufacturers and the U.S Government. The cause is research that shows the harmful effects of such foods and lack of consumption of fresh produce. Obesity in America is the highest in the past ten years and so are all kinds of diseases. Therefore, we may see incentives towards consumption of healthier foods such as fruits and vegetables.

An alternate would be consumption of existing diets along with health supplements. We are seeing obesity pills come to market. Till now, such supplements didn't prove long-term success. Until then, we can assume salads will stick around. Hence, the market for fresh produce may grow. Since Dole is a leader in the industry, it would reap the benefits of growth.

The underlying assets grow and improve shareholder equity.

Dole's assets have a value of $4.5 Billion. If we exclude intangible assets, we are looking at $4 Billion. Total liabilities are $3.1 Billion, making the shareholder's equity $1.5 Billion including intangible assets and $0.9 Billion excluding. The current market capitalization is $1.3 Billion which is less than the shareholder's equity. If we want to see the shareholder's equity grow, there are two assets that I count on ' land and cash equivalents. Since the company's lands are in crucial regions, the assets could grow leading to better shareholder's equity.

The fundamentals are strong.

Dole has produced consistent profits and cash. It is currently trying to sell its vegetable division which runs under a loss. If the sale completes successfully, the company will see an uptick in profits.

Conclusion

The company has a growth narrative and strong fundamentals. However, it does not get attention in the market. There is no institution following it which could either be a good or bad thing. The company also struggled during its history. Since the company has a reasonably good narrative, I hope to see growth one year from now. If not, will need to decide on selling.