This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Imperial Sugar: A Sweet Spot in a Sour Economy

Stocks in this article: IPSU KFT CAG

Furthermore, IPSU announced just this month the creation of Natural Sweet Ventures LLC, a new and exclusive joint venture with Pure Circle Limited to develop a specialty product line combining the natural benefits of both sugar and stevia. Product development will focus on delivering desired sweetness levels with fewer calories and natural ingredients.

Natural Sweet Ventures will work with customers in the food and beverage sectors. Since December 2008, when the FDA approved use of Reb A (an active ingredient of stevia) in U.S. food and beverages, the domestic stevia market has grown to about $100 million in sales for 2009 and is estimated to be a $700 million to $2 billion annual market in the coming years. To illustrate the enthusiasm for stevia, Pepsi announced at its investor conference this week that it would be putting "unprecedented resources" toward reformulating its beverages with natural, no-calorie sweeteners such as stevia.

Despite the positive fundamentals facing the company, IPSU's shares remain materially undervalued for a variety of reasons, including litigation overhang, lack of Street coverage and a misunderstood story and trading liquidity discount.

The biggest overhang on the company's share price is pending litigation from an explosion and fire in February 2008 at its sugar refinery in Port Wentworth, Ga., that left many employees injured and some dead. Production at the refinery, which comprised about 60% of IPSU's capacity, was suspended after the accident.

The reconstruction project has largely been completed and operational capacity nearly restored. The company is party to a number of claims and lawsuits and believes that its workers compensation and liability insurance coverage of $100 million is adequate to provide for these damages.

Trial dates for two of the 45 lawsuits have been set for May 2010 and there is a likelihood of a settlement before going to trial. A settlement announcement would almost certainly increase shareholder value materially.

As a small-cap with a sub $200 million enterprise value, IPSU receives no major Street coverage from full service brokerages; instead, IPSU is followed only by two independent research firms. The overwhelming investor sentiment is that IPSU is substantially undervalued and should trade, at a minimum, above $20 per share.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs