3 Stocks to Get on Your Watchlist: SUPERVALU INC. (SVU), The Kroger Co. (KR), Coldwater Creek Inc. (CWTR)

Dole Food Company, Inc. (NYSE:DOLE)
I often shy away from paying much attention to analyst upgrades and downgrades, but a recent article from Barron’s on Dole has me nodding my head in agreement that it could be headed higher in no time.

The big catalyst that Barron’s notes is the $1.69 billion purchase of Dole’s packaged fruit and fresh produce business in Asia by Itochu, with Itochu also getting exclusive trademark rights to the Dole brand name in Asia. The deal makes a lot of sense from an investing perspective because Dole had $1.69 billion in debt as of its most recent quarter and Itochu is paying entirely in cash (there’s no coincidence there!). This means Dole could essentially be debt-free, or nearly debt-free, once this deal closes. As the Barron’s article also points out, investors have drastically undervalued Dole’s land assets, which are estimated to be worth about $500 million.

The resulting company will boast operations in North America and Europe, and fruit will account for about 80% of total sales. Barring an unfavorable weather event that would affect crop prices, Dole is a cash-flow powerhouse that could soon be paying out a dividend to shareholders and could wind up trading at a much lower forward multiple than its peers. This deal skirted most people’s radars, but Dole is a household name that may deserve a second look for your portfolio.

Foolish roundup
Is my bullishness or bearishness misplaced? Share your thoughts in the comments section below, and consider following my cue by using these links to add these companies to your free personalized Watchlist to keep up on the latest news with each company:

1). Add SUPERVALU to My Watchlist.

2). Add Coldwater Creek to My Watchlist.

3). Add Dole Food to My Watchlist.

The article 3 Stocks to Get on Your Watchlist originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. He’s a total nerd when it comes to making lists. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of SUPERVALU.

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