Fortress Global Enterprises Inc - Class A FTPLF

RE: RE: Subdivision of Common Shares

[Nighthawk40]

Thank-you also for sharing.

I'm disappointed that RJ & Canaccord sold some of there shares. The lack of liquidity and a sudden sharp SP correction must of raised a red flag and triggered their decision to sell.

I trust that the Solidarity Fund QFL, which started the SP decline, have sold all of their outstanding shares.
No one mentioned that they made a large profit from their investment. Given their success, they may support FTP to supply capital for potentially another acquisitions in Quebec?

After meeting with the larger Institutional investors, FTP is still rated a strong buy. Perhaps the pending stock split may have been a recommendation  to stabilize and strengthen the SP.

The Landquart Mill has a solid reputation for quality. The PM1 machine should help to dramatically reduce labour and improve their margins and contribution. Even with key currencies on hold due to re-designS, I'm optimistic that demand will return. The ROI for the PM1 upgrade project was extremely positive. By adding value to this Mill, Chad has unquestionably raised the net asset value for this division. From a contribution point of view, this Mill lags the wall paper division. It will quickly be over shadowed when the Thurso Mill starts full production in 2012. By all accounts it will have a small impact on the SP in the next 12 to 18 months.

Based on Chad's various recent interviews this year, he mentioned that FTP will purchase additional mills to position FTP become a market leader in DP. We are now nearly into June and there have been no announcements.
Competitors on the other hand have been actively in buying mills to convert to DP.
New investors who purchased approx. $44 million worth of shares in the $50 + range obviously cannot be pleased.

From my humble perspective, the key to regaining the SP momentum is to quickly complete the following:

1. Approve and institute the 3 for 1 stock split.
2. Complete the Thurso DP conversion process. If it can be completed before Sept 15, 2011, that would reduce some of the anxiety level for many investors and analyst.
3. Follow-up with at least (1) smart acquisition, whether it be in DP or another high margin niche market in the 3rd or 4th quarter of 2011.
4. Release a detailed plan to bring on-line another commodity at the Thurso Mill for 2012 or 2013.

If the above items can be successfully completed, FTP should be able to meet its 2011 Q4 EPS.