rockymtnway

Imperial Sugar: Insurance Coverage Adequate to Rebuild

Mark, While I would like to blame the dismal second quarter earnings on Imperial's tragedy, profits and share prices have been falling for over a year preceding the event. I share your optimism that new machinery and retooling will pay off in the long run, I have little doubt that they have a rough road ahead. Given the number of unknowns, I don't see a bottom around $13.50-14/share as unreasonable. It's hard for analysts to provide valuable predictions prior to the resumption of production, so the improving forecasts may be a little ahead of their time. While IPSU remains on my value radar, at this point I want to feel comfortable that there's a firm bottom to the reconstruction. In it's absense, there's ample opportunity for competitors to step in and take a piece of the pie.