Imperial Sugar Company  (IPSU) Trade Now »     Rate IPSU  -  Discuss IPSU  -  Add to Watch List        

With headquarters in Sugar Land, Texas and listing on the NASDAQ, Imperial Sugar Company is part of the Confectioners industry. They are one of the largest processors and marketers of refined sugar in the United States. The company traces their beginnings back to 1843. That is when the first sugar mill was commissioned in what later became Sugar Land in the state. Imperial Sugar today is a publicly traded corporation (IPSU) with sales of $1 billion.

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.

Imperial Sugar Company (Public, NASDAQ:IPSU) is at $16 a share and less than $1 away from a 52 week low. In February their Georgia refinery was destroyed by an explosion that claimed 13 lives and there are looming questions about what that will cost the company. A month earlier they posted a lower Q1 profit and their stock continues to push lower and lower. With all the bad news, is there hope for their future?