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IPSU: Adjusting Earnings to Reflect Slower Production Gains at Port Wentworth

August 9th, 2010

We are adjusting our 4Q10 and FY11 estimates to reflect a slower ramp-up in production at IPSU's Port Wentworth refinery and the feedback we received in our conversation with management.  We recognize that many investors are frustrated by...

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Quick Thoughts on IPSU's 3Q10 Results

August 6th, 2010

IPSU reported its 3Q10 results this morning and issued its 10-Q filing for the quarter. Overall, the company's topline exceeded our expectations, but EPS fell short due to continued efficiency issues at the company's Port Wentworth refinery as well as a few other one-time...

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The "New Normal" in the US Sugar Market, Dialing in on IPSU's 3Q10, 4Q10 and FY11 Earnings

July 14th, 2010

Almost one year ago, we introduced IPSU as a long investment idea. At that time we argued IPSU shares were poised to witness substantial upside based on the following: The company's Port Wentworth refinery was on the brink of...

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IPSU: Highlights from Conversations with IPSU Management - Progress at Port Wentworth

June 15th, 2010

Yesterday we had the opportunity to speak with Hal Mechler, CFO of Imperial Sugar Company.  Management's tone was more positive than on the company's most recent conference call both about the broader sugar market and the...

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Latest WASDE Report Is Bullish For Sugar, Evaluating "Normalized" Earnings for IPSU

May 14th, 2010

Earlier this week, the USDA released an update on its World Agricultural Supply and Demand Estimates.  Overall, the report was generally supportive of higher raw sugar prices. Domestic raw sugar prices have come under pressure in the...

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IPSU: A Difficult Quarter as Predicted Also Contains a Host of Silver Linings

May 10th, 2010

IPSU reported 2Q10 earnings results this morning.  You can read the full release here.  As we discussed in our preview of the quarter, IPSU's operating results were hampered by a slower than expected ramp-up of capacity at the company's...

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IPSU - US Sugar Market Update, Revising FY10 Estimates, Evaluating IPSU's Potential Suitors

March 29th, 2010

On a year-to-date basis, shares of IPSU have dramatically underperformed the S&P 500 and other major benchmarks, despite what we believe is a compelling earnings story and an enormous disconnect between the current market...

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The Five Primary Questions We Asked IPSU Management

March 12th, 2010

This report was originally published on 2/15/10.We recently had the opportunity to speak with IPSU (14.82 ↓0.60%)’s CFO, Hal Mechler and other members of  company management to get answers to a few lingering questions we had following the company’s 1Q10...

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IPSU: Valuing Wholesome Sweeteners, Other Tidbits from the 10Q

March 12th, 2010

This report was originally published on 2/9/10.IPSU issued its 1Q10 10-Q filing this morning.  For the first time, IPSU provided P&L disclosure on Wholesome Sweeteners and Santos separately.  In the past, we have argued that the company’s ownership...

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Delays in Port Wentworth Ramp-up, Concerns About Raw Sugar Costs Don’t Change the Asset Value for IPSU

March 12th, 2010

This report was originally published on 2/5/10.IPSUshares are off 10%+ today following release of the company’s 1Q10 earnings results. Overall, revenues fell short of our expectations, but EPS of $14.84 (including...

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IPSU’s 1Q10 Results Should Illuminate Asset Value, $3.00+ Annual Earnings Power is Still on the Come

March 12th, 2010

This report was originally published on 2/4/10.IPSUwill report 1Q10 results tomorrow before the market opens.  We estimate the company could report EPS in excess of $15.00 based on the company’s settlement of its...

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Sugar Remains “White Hot”

March 12th, 2010

This report was originally published on 1/12/10.We wanted to update you on a recent development in the global sugar market and discuss recent trends in sugar pricing, both of which indicate that underlying fundamentals and investor interest in the sugar sector remain robust.Bright Food...

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A Closer Look at Asset Value for IPSU – Plenty of Upside Remains

March 11th, 2010

This report was originally published on 12/29/09.IPSU shares are rallying today following the company’s announcement that it had reached a settlement with its property and business interuption insurance providers related to the Savannah refinery...

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Dialing In On IPSU’s Cash Earnings Story for Calendar 2010

March 11th, 2010

This report was originally published on 12/8/09.IPSU shares have traded off as much as 15% today following the company’s 4Q09 earnings release and subsequent conference call.  You can find the earnings release here.  As we indicated in...

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IPSU’s Upcoming 4Q09 Results, Key Sugar Market Developments

March 11th, 2010

This report was originally published on 12/7/09.IPSU will report 4Q09 results before the market opens tomorrow.  Management will host a conference call at 11AM EST. You can find the details here.  IPSU shares have traded sharply higher into the earnings...

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IPSU’s JV Deal Has Enormous Implications Competitively and from a Litigation Perspective

March 11th, 2010

This report was originally published 11/23/09.IPSU announced at the end of last week that it had finally completed its long anticipated joint venture arrangement with Cargill, Inc. and Sugar Grower and Refiners, Inc. (effectively...

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The Implications of IPSU’s Press Release About the “Whistleblower”’s OSHA Deposition

March 11th, 2010

This report was originally published on 10/24/09.IPSU issued a press release, which provided details on the latest testimony of Graham H. Graham a former Vice President of Operations of the company who up until this point had...

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Can Litigation Risk at IPSU Be Boxed?

March 10th, 2010

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IPSU: Inching Closer to Unleashing Its Full Earnings Power

March 10th, 2010

This report was originally published on 9/8/09.Imperial Sugar Company (IPSU 15.14 ↓1.05%) issued a press release today to provide investors with an update on the status of the rebuilding efforts at its Port Wentworth refinery.  The company continues to...

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The US Sugar Market Explained and Answers to Some of Your Questions on IPSU

March 10th, 2010

This report was originally published on 8/20/09.To say that sugar has become all of the rage in the commodities markets would be an understatement.  A simple google (GOOG 576.45 ↑2.90%) news search for “sugar” returns more than 27,000...

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Heading Back to the Sugar Shack: Long Imperial Sugar Company (IPSU)

March 10th, 2010

This report was originally published on 8/4/09.It might not be well known to most equity investors but the global market for sugar has been on a tear lately. Just this week, the price of raw sugar traded on ICE Futures hit a three and a half year...

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