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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (29280)	12/2/2002 12:33:49 PM
From: Ditchdigger	Read Replies (2) \| Respond to of 29382

Picked up a bit of bgo, just in case I'm right about q 1 <g>..although my timing may be early..Will let them sit in my ira for awhile..

To: Ken W who wrote (29280)	12/2/2002 1:51:29 PM
From: Crossy	Read Replies (1) \| Respond to of 29382

re: Imperial Sugar New Common IPSU.OB stock on a tear - $ 2.70 (up from $2.00) sorry for my late posting on this issue but I honestly think that this one got some juice to it.. Imperial Sugar, chapter 11 reorg firm, brought down their bank debt from $200m ex-chapter11 emergence to $120m now. This is a major player. I expect that in the second half of 2003 they will shift their attention from liquidity management to growth orientation. In the past they were famous as a sugar refiner. However they have around 1/3 of revenues from food processing which I think carries a higher margin. After chapter-11 resurgence their ratios are very interesting: Revenues > $1bn /yr, 10m shares out, PSR 0.03, P/BK of 0.25. The company has been selling noncore assets to deleverage. From ownership structure the firm is equally interesting: Lehman Bros owns 30% of the new common followed by Swiss Re that owns 15%. Some high-yield bond funds had bigger positions in the new common since they were awarded the shares in exchange for bonds in the chapter11 processing. Usually those entities have a statutory obligation to get rid of new common in a time frame. In IPSU's case their selling brought the stock down from $10 to above $1. However Fagan Capital LP increased their stake from 300k shares to 800k (see SEC filings). I believe this is a real gem and the Book Value is real, if not grossly undervalued because of hidden reserves connected to the vast real estate holdings of the firm. If you look at their strategy they seem to be shifting to sell noncore refining assets at remote locations. Fagan Capital wants boardroom representation. A fight for this could be the result.. Did some DD on Fagan Capital and found that this firm is quite active in food industry, restaurants and related vertical markets. They were involved in the taking-private of Quiznos it seems: google.com. best rgrds CROSSY