UPDATE: Standpoint Research Downgrades Chiquita Brands to Hold

Standpoint Research downgrades Chiquita Brands International, Inc.

from Buy to Hold. The firm's Ronnie Moas said, "There has been good news and a few analyst upgrades recently and I would sell into this strength. There is restructuring, stronger banana prices, reorganization of debt, improving margins, proposed acquisition of competitor Dole by Dole CEO Murdock boosting interest in CQB, and P/S is just 0.2X, among other positives (seemingly priced in by the market in the current quote and with relative strength now above 95). "Lost in the recent rally (and what is not being given equal attention lately) is the fact that this is a low margin business; sales at $3 bln annually are 33% below 2007 levels and half of the enterprise value is debt. CQB currently has $50 mln in cash with $600 mln in debt." Moas said he would "possibly look to reinstate this recommendation on a correction to $10." Despite the downgrade, shares of Chiquita are up nearly 1 percent to $11.75 at last check.