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Mission Produce Inc T.AVO


Primary Symbol: AVO

Mission Produce, Inc. is engaged in the farming, packaging, marketing, and distribution of avocados to food retailers, distributors and produce wholesalers. It operates through three segments: Marketing and Distribution, International Farming, and Blueberries. Its Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. Its farming activities range from cultivating early-stage plantings to harvesting from mature trees. Its Blueberries segment is a farming operation that cultivates blueberry plants in Peru. It provides value-added services including ripening, bagging, custom packaging, logistical management, and quality assurance. The Company also provides its customers with merchandising and promotional support, insights on market trends and hands-on training.


NDAQ:AVO - Post by User

Comment by justlogicalon Nov 04, 2015 4:21pm
158 Views
Post# 24259408

RE:RE:Balance sheet concerns (maybe)

RE:RE:Balance sheet concerns (maybe)A raise is industry jargon for raising additional capital for a company and ultimately increasing the amount of stock a company has out. A raise in stock value is great but a raise of capital (if done at depressed prices) can be dillutive and a negative.

If you use your precious capital on expenditures outside of the core operating business (which are optional and at your full discretion)  and have to raise additional capital at depressed prices (which is dillutive) to take advantage of opportunities or just strengthen your balance sheet -that is not good business. I believe management and the board of high growth companies should not be using capital to buy back shares and buildings. I am surprised by AVO's team approving such actions.

If an opportunity came up today to acquire a super company in the space that would add great value, AVO may not have the cash and therefore working capital to properly fund operations and take advantage of a buying opportunity. Just doesn't make sense to me - not at our current valuation.
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