Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 10,537
OK, I've been busy lately with little time to post, but here's a quickie. The company is Imperial Sugar, a refiner and marketer of sugar. They went bust a few years ago and have emerged as a leaner, healthier company with virtually no debt. Book value is $18 a share, versus the ~$13 current price. I can't think of a way that this company could possibly be worth less than ~$14 per share, even if you busted the thing up and distributed the proceeds to shareholders. I am a serious cheapskate, so I will wait for the next gap down and hope to buy it in the vicinity of $11.
Plus you would get to use all those Homer Simpson sugar episode quotes: "the strong must protect the sweet" and "first you get the sugar, then you get the money, then you get the woman"
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.
U.S. based? Sugar has a nice fat tarriff on imports, artificially raises the price, thus the profit margin. There has been talk lately of removing the tarriff, maybe that uncertainty is depressing the price?
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 10,537
Job's not too bad so far, just fairly heavy hours and I am also studying for CFA level III, so I am busy and exhausted.
Yep, IDSU benefits from the tariff. I suspect that the tariff won't go away any time soon, given the sugar industry lobby and all the pandering Congress does to agriculture. If it does, IDSU is still worth almost the full value of the current stock price if you haircut the PP&E and liquidate everything else into cash. If you get it at 11 or less, it is even safer.
Gotta love the competitive advantage a company builds during bankruptcy. *Brewer, I have been reading pretty good things on this one and the CEO seems to have a pretty solid plan. *However, I tend to get a bit weary with companies that are tied to a commodity. *You think the stock is so cheap the price of sugar doesn't matter? *Or are they in a business that is protected from price swings? Or are they hedged? *By the way I have been * at GIM's price as of late. * *
__________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
I bought my first batch of GIM around 9.0. I was happy to average down a bit cheaper later on. Great diversifier, low e/r and has recently moved more towards Asia (while still holding EU Etc.) and selling at a discount still. And 5-6% div too+good experienced management. Good fit for people wanting to also diversify their bond part of portfolio. Cheers!
I am a serious cheapskate, so I will wait for the next gap down and hope to buy it in the vicinity of $11.
Yikes, Brewer, I sat on my assets for a couple days before I got around to researching IPSU, and guess what the first news article was:
Ridgeland, MS, MAY 19, 2005 (EventX/Knobias.com via COMTEX) -- Schultze Asset Management LLC, which owns a 14.4% stake in Imperial Sugar Co. (IPSU), has offered to acquire the remaining outstanding shares of the company for $17 a share in cash, according to an amended Schedule 13D filed with the SEC. Schultze requires that the company's board respond to its proposal by next Wednesday.
Looks like you weren't the only one keeping an eye on the prize-- hope you didn't wait for the gap down! And next time you recommend a stock, I'll get right on the research.
Maybe it's better this way-- you probably would have been subpoena'd by the SEC the next morning...
__________________ *
* For more info see "About Me" in my profile.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 10,537
Dammit! I really shouldn't torture myself with good ideas unless I am actually willing to sell something else to buy the new thing I have found. Looks like someone with a lot more money got to IPSU first. Nice to know my nstincts are generally good. Maybe next time...
Quote:
Linear Mode
