Throwback Thursday – Dole Investment Analysis Case Study Part 5 Dole Shareholders Win – Sort of
This is the tenth post in our new Throwback Thursday’s Series, where we share with you posts from the past blogs to bring you as much value as possible.
Today, we’re continuing the case study on Dole from articles in 2012 and 2013.
In Part 1, I valued Dole and compared it to its competition.
In Part 2, I shared with you the results I had in only 104 days after my initial analysis of Dole led to great things.
In Part 3, you learned about some valuable hidden assets Dole owned including the value of its land and ships.
In Part 4, we talked about the rough part of this situation. The Dole Chairman was apparently working to manipulate Dole’s share price to bring the company private at an extremely low price.
Today, we are learning the final ruling on this case and how Dole shareholders, its Chairman and majority shareholder, David Murdock, offered to take Dole private at a ridiculously low ball price and screws shareholders.
We are now to the far more important learning aspects of these articles.
I researched and wrote extensively about Dole when I began doing ‘real’ investment research in 2012.
I’m going to be reposting a series of my past research and investment articles on Dole beginning today.
They are a great case study in doing deep work. Here are some of the things we’ll be looking at in this series…
- HOW to find the value of potentially hundreds of millions or billions of dollars worth of hidden assets
- The signs of a company potentially having hidden value
- Doing deep work to find the value of these and other things people won’t look for
- Valuations and how and why I’ve done these valuations
- And more…
I hope you enjoy this series and know we can all learn a lot from doing this.
Oh and please excuse the poor writing style and huge paragraphs. I wrote this in 2012 before I learned how to write.
As always, nothing is changed below from the past article in 2012.
In the end, Dole shareholders won a major victory over Dole and the manipulation of its share price before going private and gained back a significant amount of capital in the form of damages.
However, Dole shareholders still didn’t get the full value of the company as Mr. Murdock was still allowed to take the company private at a 19% discount to the MINIMUM I thought Dole was then worth.
I still stand by what I said then as well. So If you come across a similar situation, you need to be careful.
“If a situation like this happens to a company you own be very careful, trust your research, trust your instincts, and get out of owning the company if you think you need to. There are a lot of other companies you can spend your time researching and owning rather than spending your precious time and capital having to worry about whether a company’s management is going to screw over shareholders. Dole’s current shareholders are fighting back by suing the company and I wish them good luck because the proposed buyout offer is ridiculously low.”
P.S. We just launched the new Value Investing Journey Masterclass. If you want to learn how to do the above things yourself, check out the course at the link above.
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