IPSU: Closing Out Long Idea With a 63% Loss

We are closing out our long idea on IPSU with a 63% loss.  Our views on the relatively positive fundamentals in the US sugar markets (widening refined sugar spreads) the asset value inherent in the company, and the cash flow potential of the business once normalized...

IPSU: The 10 Questions That Matter Most Now, It All Comes Back to Management Execution and Unlocking Asset Value

Even in the context of a market that has been characterized by huge price swings and “whip-saw” action, IPSU’s stock has distinguished itself in terms of volatility.  It seems almost impossible to...

IPSU: Too Much Asset Value to Ignore, It Was More a Crime of Execution (Temporary) Rather than the Marketplace...

Admittedly, IPSU’s stunningly poor 3Q11 earnings results still have us somewhat shell-shocked. Even the company’s greatest skeptic probably could not have painted an earnings scenario for 3Q11 as...

IPSU: List Price Spreads Widen to Katrina-Like Levels, Raising Price Objective to $32.50; 3Q11 Preview

Even the most ardent bulls on IPSU shares (ourselves included) could not have predicted the violent rally in the stock over the past three months.  IPSU have gained an astounding 71% since the company reported a big...

IPSU: Decision to Allow Wholesome Sweeteners Option to Expire Is a Surprise, but Not Necessarily a Disappointment

On Friday, May 26th after the close, IPSU announced that it would not exercise its option to acquire the remaining ownership stake in Wholesome Sweeteners from Edward Billington and Son Ltd, a UK based food...

IPSU: The Long Awaited Breakout

In our 2Q11 earnings preview for IPSU we argued that we were excited about the company’s pending earnings release even though we did not expect the quarterly results themselves to be particularly compelling.  As a reminder our enthusiasm heading into the quarter was based on the...

IPSU: Finally a New IPSU?

In the 21-months since we published our initial report recommending that investors go long shares of IPSU, quite a bit has changed.  One thing that has not: IPSU’s share price.  The stock has declined 1.5% since we published our original report, compared to a 34.5% gain in the S&P 500...

IPSU: Refined Sugar Spreads Continue to Widen, Asset Value Exceeds $20/Share, and Yet…..

As IPSU muddles along all too close to its 52-week lows, we thought it might be interesting to consider the following: US Refined/raw sugar spreads are close to record levels. List bulk industrial refined sugar prices through...

IPSU: 1Q11 – More of the Same, When Will Investor Patience in IPSU Be Rewarded?

IPSU reported 1Q11 results this morning that can be best characterized as more of the same.  The company reported an operating loss as a result of ongoing production issues at its Port Wentworth refinery, which were further exacerbated...

IPSU: Begrudging Progress At Port Wentworth Offset by Newfound Mgmt. Optimism - Revising FY11 Estimates

Heading into IPSU's 4Q10 earnings release, we thought a messy quarter would be overshadowed by commentary from management highlighting significant production gains at the company's Port Wentworth refinery.  Our...

IPSU: At Long Last Progress at Port Wentworth, Now IPSU's Earnings Story Begins

In the 15-months since we initially recommended going long shares of IPSU, the stock has been volatile but has only yielded a total gain of 5.0%, compared to a 21.0% return for the S&P 500.  The lackluster performance of IPSU shares is...

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

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...

Quick Thoughts on IPSU's 3Q10 Results

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...

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

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...

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

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...

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

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...

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

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...

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

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...

The Five Primary Questions We Asked IPSU Management

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...

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

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...

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

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...

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

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...

Sugar Remains “White Hot”

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...

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

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...

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

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

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...

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

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...

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

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...

Can Litigation Risk at IPSU Be Boxed?

IPSU: Inching Closer to Unleashing Its Full Earnings Power

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...