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Fortress Global Enterprises Inc - Class A FTPLF

Fortress Global Enterprises Inc produces paper pulp, security papers, and other security-related products. The company through its segments produces dissolving pulp which is primarily used for viscose/rayon manufacturers in Asia. Its business is spread across Asia where it generates most of its revenues, Europe, Canada, and International.


GREY:FTPLF - Post by User

Comment by OptsyEagleon Feb 02, 2012 12:38pm
147 Views
Post# 19480357

RE: Analyst upgrade confusion

RE: Analyst upgrade confusion

Let me answer the question this way.  If I offered you sell you a boxed filled with $1,000,000 of cash, to be delivered on Sep.30, 2013, what would you bid for it?  Would it be worthless because it is not being delivered today, this month or even this year?  If you did offer
for it, I bet someone would outbid you.

.

In this case you would most likely do a discounted valuation of $1,000,000 delivered in a year and nine months.  It would equal something less then $1,000,000 but definitely something much greater then
.

.

So in a nutshell, the net present value of Fortress Paper just increased by the discounted value of those future cash flows and anyone that just discounts it to
because the hundreds of millions of dollars will not materialize for 21 months, is an idiot.  So that is why the valuations have been increased, an in my opinion not nearly by the $25 to $30 per share, they should have been increased.  In any event, their targets are virtually worthless.  The stock will go where it goes.

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