Fortress Global Enterprises Inc - Class A FTPLF

RE: RE: What Chad told the senate...

[OptsyEagle]

Chad's quote form this document.

"These assets we were able to acquire and secure for $1.2 million. A lot of people thought we were crazy and probably spent too much. However, their replaceable insurance cost is $851 million. These assets are more than 95 per cent ideally suited for our new product, dissolving pulp. As we turn this project around and convert to dissolving pulp, we are able to take these $1.2 million assets that were heavily underutilized by the previous owner, and, once we are fully converted to dissolving pulp, even at the initial stages, given the current or spot price of dissolving pulp, the mill will generate just over $200 million in profit."

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Simple math.  $200 million dollars, minus $60 million for taxes equals $140 Million.  Divide by 12 million shares, equals EPS of $11.67 per share, plus a buck or two from the banknote and wallpaper business.  Add to that the undervalued assets on the balance sheet (what happens when you buy a $billion dollars of assets for $1.2million)  that will be recognized as these profits role in and a company with very little debt, and you have to start seeing a much, much higher stock price. 

It currently trades at 3.67 x the above earnings.  If you use a lousy 12x earnings you get about $140 per share.  That is why those institutions don't mind driving up the share price with every trade.