[Beginning of Cramer's verbatim comments for this segment...]

Jim:          Hey, we got a big IPO coming this week… and it is my job to try to help you analyze and try to profit from it… unlike other shows that tell you about all of the IPO’s that are coming and do not wear anything like this… on Mad Money we actually show you what to do with the IPO’s, how to play them… and so far we have been calling them right… if I do say so myself… and I have to because nobody else will…

So far this year, I have recommended that you get in on 5 IPO’s…

Mead Johnson Nutrition Company (MJN), Digital Globe (DGI), Emdeon (EM), A123Systems (AONE), and Select Medical (SEM)… on average these are up over 35% from where they came public… even more important though, the risk reward on the IPO’s that I have recommended has been just about right… we nailed the big one A123 up75% since it came public less than a month ago on September 22nd… and you are down a little bit on Emdeon which you could have sold for a profit… up 1% from the IPO… and Select Med off 3%...

Hey, forget about home runs and strike outs… you just won a good on base percentage on IPO’s, for the baseball players… and ours has been pretty fabulous… do you want to know more about analyzing IPO’s?… okay, here is the deal… get a copy of my new book, Getting Back To Even, which I tell you how to play these IPO’s.

Anyway, we both have done pretty well on our derivative IPO plays… Banco Santander Brasil STD (BSBR) up 9% since I told you to buy it off of the IPO of its Brazilian business… Wynn is up 63% since I first recommended on the Macau IPO.. .so the next IPO I want to look at… and there is a lot that I pass up on.. but the next one that I want to look at… the reason that I am in this is… Sponge Bob costume, why I am in it? Fruit-cup-amid by my side…

You have got to love this one… it took forever to do…

It is Dole Foods… DOLE…

This is a company that you probably see every time you go do the grocery store… unless you have got a very unhealthy diet… the company is offering 35.7 million shares at between $13 and $15 a share… and using the proceeds of the deal to pay down debt… I think that if you can get in Dole at $13 to $15... it is grand theft produce.

The offering should price on Wednesday…

It has got good blood lines… Goldman Sachs, Bank of America, Merrill, Deutsche Bank, Wells Fargo… they are the lead underwriters… so why do we like Dole?… well first it is the top banana seller in North America and Japan… number two in Europe and Korea… number one pineapple producer… number one in iceberg lettuce… celery, cauliflower… and it is number one in canned pineapple… pineapple juice… fruit bowls, jarred fruits… basically this is a company that is in either the number one or number two market spot in most of the markets that it competes with… with double the brand awareness of its next competitor… could you do a fruit-amid with any other company?… I do not think so.

Dole gets 76% of its sales from fruit… and as the rest of the world becomes wealthier it is likely to consume more fruit… fruit is good for you… in the west we eat about twice the fruit per capita than most developing countries … Dole also gets 15% of its sales from vegetables.. and another 15% from packaged foods… the company has a lot of success in cleaning up its balance sheet… with net debt down from $2.3b to $1.6b… and its next bond maturity is not until 2013... you have got a lot of time here… I also like that Dole knows how to launch new products… over 2/3’s of its packaged food products are still around 9 years after they have been launched… while on average for the industry only 20% of the new products are still on the shelves after one year… making Dole’s track record in new products, I think pretty incredible.

Now, I do not usually like IPO’s of companies that have been taken private… but Dole is the exception… the company was bought out by management in 2003... not taken private by an LPL firm… in fact, Dole is controlled by the same person David Murdoch since 1985... and after the IPO, Murdoch who is the Dole’s chairman, he will maintain 59% of the companies ownership… he is not selling anything … this is not like the awful, awful, awful IPO of Rail America brought to you by the really good people of Fortress Group last week… the best thing about the IPO on the other hand is the price… right now it is expected to price between $13 and $15... I think that you should buy as much as you can… as much as you can get your hands on at that level.

If Dole were to trade in lines with peers like Chiquita… how about a Fresh Del Monte Produce Inc. (FDP)?…

This would be a $20.37 stock… 40% higher than the mid point of the price range… and I think Dole is the top dog, best-of-breed produce name that it is should probably trade at a premium to the other companies…not just in line…certainly not at a discount.

Here is the bottom line…

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The Bottom Line!:     I know my IPO’s… so you had better pay attention when I tell you to try to get some Dole Food Co, Inc. (DOLE) when it becomes public… but remember, you want to get in on the actual offering… I am not telling you to buy this in the after market… that is something that only Patrick would be dumb enough to do… even Gary knows better than to buy in the after market… although, plaintively, I am not quite sure about Squidward view on the issue.

 

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