Imperial Sugar Company (NASDAQ:IPSU)

IPSU sees large swings in EPS as their "Gross Revenue" changes slightly. Year-end 9/05 saw "Gross Revenue" at $800 million with EPS of Negative $1.70. With an uptick this year of roughly $150 million in "Gross Revenue" their EPS is rising to roughly $3.86 for a year-nd 2006 p/e ratio of 8.4. This is great and only appears to allude to a much higher stock price but "Gross Revenue is expected to fall in 2007 and that should bring EPS back down significantly. Analysits call for $900 million in revenue and that would deplete EPS by a third bringing it back into the $2 range which would be a forward year-end 2007 EPS of 16. For a cyclical industry company such as IPSU I can't imagine a stock commanding a trailing p/e of 25 expecting significant deline in earnings over the next year due to slightly declining revenue to increase in stok price. I expect this stock to trade between $27-$32 over the next 12 months and as 2007 begins winding down we can get a better look into IPSUs future at that point. This stock will under perform the S&P over the next 12 months.