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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

Post by cashcrunchon May 25, 2012 7:40pm
478 Views
Post# 19948509

RED FLAGS

RED FLAGS

Its been awhile since I posted; I continue to HOLD; and am underwater....

But going forward I have some concerns (RED FLAGS)

1) in conference held in March/2012 (to discuss 4q results) an analyst asked FTP what the present cost of DP at THurso was  - FTP did not provide a figure and responded by saying "its complicated".  I keep hearing Chad say that Thurso will be a low cost producer in the area of $650 per MT  -- but FTP`s reluctance to disclose how close they are to this goal leads me to believe their lagging badly--I wonder if thepresent costs are higher than the current SALE PRICE of DP --anyone know what Thurso cost per MT of DP is presently

2) most recent conference call which was held in May/2012 (which was halfway thru 2Q), no present cost of DP was disclosed and no guidance RE;2Q " Thurso was given. An analyst in Globe&Mail echoed similar concerns.  Combine this with fact that FTP had no problem in providing press releases for the positive aspect of Dresden operations prior to 2Q conference call makes the lack of guidance of 2q at Thurso seem even more ominous  ---- seems that far as Thurso and FTP SP is concerned, no news (lack of guidance) is NOT good news--can`t help but wonder if current decline of SP is due to lack of guidance

3) During "2Q`conference call, Chad made a vague reference to DP having `good days & bad days``Not sure what that means but it doesn`t inspire confidence in the near term

Here`s hoping that fund managers Randall A. & Irwin M. are right that 2Q is beginning of +ve cash flows.

I continue to hold and value posts made to this BB.

GLTA

 

 

 

 

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