Question #1: John from Massachusetts asks about Chiquita Banana (CQB) which continues to get hit by lower banana pricing in Europe and weak sales volume of its spinach salads in the US. He wants to know if either of these trends will turn around soon enough to save the stock?
Jeff Macke says the spinach problem stems from the E-coli scare a few weeks back. Most people have forgotten about that by now. The other problem with CQB is they just paid $25 million because they’re dealing with terrorist governments. All things being equal, Jeff likes FreshDelMonte (FDP). They have a more widely-diversified product line.
Question #2: Jana from Georgia says she’s heard the guys talk about "hot rolled steel,” She wants an opinion on Brazilian steel producer Companhia Siderurgica Nacional (SID).
Guy Adami loves to say hot rolled steel. SID is up 34% since January and it’s a great stock. The company bid for Corus (CGA) in November but was outbid by Tata Steel. Now SID will likely have to make another acquisition and pay more. Guy likes SID but says wait before buying.
Question #3: Dalia from Connecticut says with Hurricane Susan approaching - huh? - should she short insurance companies such as XL Capital (XL) and American International Group (AIG)?
Tim Strazzini says with storms approaching there can be a bit of a mania around the specialty insurance companies. But Tim feels it’s not a great trade, and they get over-shorted.
And, just like you, the guys are wondering: where is Hurricane Susan?