Full Call on Chiquita Brand International Inc.

In 2008 I bought several Chiquita Brands Intl. Inc. 7.5% of 11/01/2014 Sr. Notes at $650. If you recall, the economy went into the “shitter” in 2007 and was in full decline in 2008. The economy took the stock and bond markets with it. So in late 2008, I saw the opportunity to start a very aggressive retirement program. I was saving for retirement since 1980 but other events like saving for children’s college, cars, and houses took priority. So I was not able to put away large amounts of cash until I started working full time and other financial distractions were taken care of.

Chiquita Brands gave me a yearly return of 11.538% for the last 5+ years. The bond is a “B-“rated bond that matures on Nov. 1, 2014. But then I got a shock. The bond is being “called” at $1,000 each. So now I am crying all the way to the bank. I am only going to receive a “Yield to Maturity” of 12.517%. That means I will or have received 12.517% return on each bond for 5+ years.  I will receive my money on March 16, 2013. At that time, the money from this bond will be turned over into a new High Yield Corporate Bond.

This lesson is important because many brokers looking to make money for themselves will tell you that bonds get called like that is some crime punishable by 25 year in federal prison. Now you are armed with information that proves that the brokerage myth about bonds is a lie.  

According to Chiquita Brands International Inc., Chiquita’s history is a story of unique and positive transformation. From the company’s founding by Captain Lorenzo Dow Baker in 1870 to the addition of the Fresh Express brand in 2005, Chiquita’s dedicated employees have transformed the company into one of the leading socially and environmentally responsible produce companies in the industry.

Although Chiquita’s history includes storied moments in its past(over through of governments and economic slavery), the company now proudly focuses on extending labor rights, protecting our environment and investing in the communities in which they live and work. The company’s core values of integrity, respect, opportunity, and responsibility serve as the basis of their business performance and guide their everyday activities. As you may know, Chiquita Brand is known for its world-famous bananas, but they also offer all kinds of other fruits and vegetables.