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Non-Tech : Imperial Sugar (IPSU) -- Ignore unavailable to you. Want to Upgrade?

To: Patentlawmeister who wrote (66)	1/4/2003 9:51:37 AM
From: Crossy	Respond to of 121

Well cuda, that's the next "objective" and we will get a handle on it when the next 10Q comes out. Not only would I like to see new updated figures for company book value etc. but also I will look at gross margins and company's profitability potential. An earnings valuation modelling of IPSU only makes sense after we had obtained this kind of data. Takeover premium would be after that.. And by the way, the shareholder rights plan ensures that a premium over market will have to be paid.. Good to have this in plaece. A little fight for control could do wonders for your share price.. rgrds CROSSY

To: Patentlawmeister who wrote (66)	1/4/2003 11:58:41 AM
From: Crossy	Read Replies (1) \| Respond to of 121

Cuda, some research on the sugar refining spread, the prime source of gross margins available to IPSU.. I calculated the current "refining spread" from the time series data available here: fas.usda.gov Spread historically was 15-30% but the high energy prices and bumper crops sent the spred down to very low numbers throughout 2000. We even had NEGATIVE spreads during 3 months: June and November 2000 and April 2001. since then the spread recovered nicely to 28% in 2002Q1, 23% in 2002Q2 and 20% in 2002Q3. Recently prices seemed to have firmed again. Let's see. I get the impression that the "raw spread" is the maximum amount of gross margin that Imperial Sugar could attain each time. Production inefficiencies should reduce the gross margin available from the spread.. Reduced working capital requirements should improve the gross margin also. I'd love to see IPSU migrating to a business model where less stocks of inventory would be required. Would improve capital turnover and thus profitability.. rgrds CROSSY