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Imperial Sugar (IPSU) has been under attack lately, as the Occupational Safety and Health Administration [OSHA] has levied a $8.7 million fine for safety violations leading up to last February's explosion at its Port Wentworth refinery. A Senate Subcommittee has reviewed testimony from IPSU's Vice President, Graham H. Graham, detailing the plant's condition prior to the explosion. On top of that, the onslaught includes dismal third quarter results.

OSHA findings: IPSU CEO John Sheptor's response to OSHA's citations was strong: 

Imperial Sugar's (IPSU) stock price has been on an absolute tear lately, rising almost 24% to $15.70, from last month's all time low of $12.66 (hit on 6/12/08). IPSU's relative strength has been off the chart when compared to the DJIA which retreated approximately 9% within the same period.

The Driver

Imperial Sugar (IPSU) recently reported second quarter revenues of $145 million, resulting in a $15.5 million loss (see conference call transcript). <!---->The loss was attributed to softer refined sugar prices, but was mainly due to the explosion and shutdown of its Port Wentworth refinery. The company disclosed that the accident and subsequent fire caused $28 million of property damage and that its insurance proceeds for the quarter were $15.9 million, resulting in a one time charge against earnings of $12.1 million.

"Good God Almighty!" The woman in front of me had reached the age at which she no longer cared what anyone thought of her. After nearly running into me with her shopping cart? and clearly not caring about it? she paused to pick up a pack of Baltimore's famous Berger cookies.<!--more--> She squinted, unable to make out the price tag at first. Then came the scream. "$4.59! Good God almighty, I don't like 'em that much!" Throwing the box of cookies down with disgust, she shuffled off mumbling under her breath.