A Big Upgrade for Imperial Sugar

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After holding no better than a three- and four-star rank over the past year, enough top-performing CAPS members have turned bullish on Imperial Sugar (NASDAQ:IPSU) recently to upgrade it to a chart-topping five stars. A total of 278 members have given their opinion on Imperial Sugar, with many of them offering analysis and commentary explaining the recent optimism.

Many CAPS members are bullish on the future demand for sugar and expect companies like Imperial Sugar and Brazilian peer Cosan to benefit. Imperial provides refined sugar products to customers like Kraft Foods (NYSE:KFT) and Wal-Mart Stores (NYSE:WMT) in the U.S. and also sees more sources of potential growth internationally. It outsources to its joint venture in Mexico which it expects will provide increasing volumes in the years ahead. 

Imperial also plans to buy out the remaining 50% interest that it doesn't already own in Wholesome Sweeteners, a company focused on fast-growing higher margin organic sugar products, which it sells through retailers like Costco (NASDAQ:COST) and Whole Foods (NASDAQ:WFMI). The company is continuing to ramp up production at its rebuilt Port Wentworth, Ga. plant after a fatal explosion occurred there last year.

Imperial Sugar also sees a positive trend forming in soft drinks and other areas of the food industry -- switching to all-natural cane sugar from high fructose corn syrup. While Hansen Natural (NASDAQ:HANS) already uses cane sugar in its sodas, big boys like Coca-Cola (NYSE:KO) and Pepsi, as well as private label brands are starting to use the natural stuff in some of their drinks.

Do you think Imperial Sugar deserves its five-star status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.

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