Fortress Global Enterprises Inc - Class A FTPLF

RE: RE: RE: RE: Corporate update

[Nighthawk40]

Hi,

Thanks for your frank and honest feed-back.

I agree that the competitor's lawsuit will need closure to help ease investors fears. That remains a question mark.
My apology for down playing this issue.

As for the Lanquart Mill, labour layoffs were always as part of the ROI calculations for the PM1 machine project. As such, the cost to produce currency in 2011 and beyond should be reduced significantly. We still have another 6 + months of production left in 2011. I was surprised that middle managers were also let go,
It is my hope that sales orders have only been delayed and not permanently canceled. Hiring additional sales people to increase sales may help fill the gap. We will have to wait for the Q3 & Q4 results to better understand the sales situation.

The Dresden Mill does appears better in respects to sales / profit growth. It is the dominant leader in this segment.
I'm optimistic that it will meet its profit projections for 2011.

The major "Cash flow" contribution for 2011 is expected to come from the DP production from the Thurso Mill.
My notes show that the conversion process is scheduled for completion in late August with incremental production officially starting in September. (As per the last corporate announcement, this has not changed)

Contribution, as a result, is expected in Q4. If this occurs as planned, FTP still may have an opportunity of meeting its modest EPS projections for 2011.

As for taking profits, I'm inclined to wait until FTP fully reveals its DP strategy for 2011 and 2012.

Analyst covering this stock and major competitors are predicting that the DP should remain strong for at least another 2 years.

Only time will tell if my assessment is a bit too rosy. 

The quality of the next FTP acquisition will be pivotal in stating whether the glass is "half full" or "half empty".

Cheers,

Nighthawk40