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

To: Patentlawmeister who wrote (69)	1/4/2003 1:41:51 PM
From: Crossy	Respond to of 121

Cuda, I believe IPSU did some hedging in the past and I was right. Right now they own direct production capacity of 27mio cwt of cane and 4mio cwt of beet sugar. Their net hedging exposure is a meager 1.5m cwt raw sugar long position, locked in around $21.79. Frankly it doesn'T make sense to buy further long positions for raw sugar now. But if sugar climbs further, may be a good idea to sell it with a nice profit... for a processor and packager like IPSU, I get the impression raw sugar futures purchase only make sense to "lock in" cheapo prices. Since they sell processed output, a reverse hedge doesn't seem feasible, as long as futures for processed sugar aren't available.. the "Rocket" like cup & handle (actually multiples) I saw in my TA software. Really beautiful.. best wishes CROSSY

To: Patentlawmeister who wrote (69)	1/4/2003 6:30:40 PM
From: Crossy	Read Replies (1) \| Respond to of 121

### PROPOSAL TO IPSU MANAGEMENT ### (I honestly do hope, Imperial's CEO - Mr. Peiser gets to learn about my musings here) Now that you did the fine job of putting Imperial Sugar back on a sound financial footing, I as an interested party as a shareholder would like to see ways of improving shareholder value by utilizing the company's strategic potential to the fullest extent possible. Of course your brand strategy seems to make a lot of sense and judging from current sugar refining margins coupled with the historical gross margins available to IPSU I now think that a 10% gross margin (Net sales - COG Sold) looks entirely attainable, which, if realized, could result in pretax quarterly earnings of around $0.50-0.70 in the long run. But as long as market cap is under book value there's a lot more that can be gained by putting financial instruments at work. For example, I firmly believe that Imperial should thus implement a share buyback by open market purchases, at least in the amount of stock options to be issued each year. In this way, dilution is prevented and book value could be further enhanced as long as the Price/Book valuation ratio of Imperial stays under 1. Another important move would be a move to a "REAL" exchange, like the Nyse, for which you should be qualifying soon, judging from your tangible net assets, or the Nasdaq NM (National Market instead of Nasdaq SmallCap which has better liquidity) which would require a 5% miminum bid price over a certain period. For example, the redemption of 1m shares would, at current price levels would cost the company probably around $8m (at $8 per share) but would result in an increase of book value per share of around 4.5% I do hope your time permits you exploring these options to create further value for us shareholders sincerely, CROSSY