Fortress Global Enterprises Inc - Class A FTPLF

RE: RE: in the Globe & Mail today

[mr1derful]

The reason the stock is now a "wait and see" story is become Chad has lost credibility. Chad is a hell of a salesman and he made it sound like converting a pulp mill to a DP mill was an easy and straightforward. Instead, the project is over budget and hasn't met the production timeline. Chad also said it would take 3 months to get production up to full capacity whereas the reality is probably closer to 6 months. Also when cotton prices and DP prices were sky high, Chad promised multiple DP acquisitions. Of course, he assumed he was the only one thinking about converting pulp mills to DP mills. Other people are also smart and we have had no shortage of announced DP conversions. Some of the conversions won't take place but there is enough capacity coming on board where DP prices will be capped on the upside.

Chad is in the penalty box because he has not delivered on what he has promised. Investors are skeptical and they will no longer give him the benefit of the doubt. Look at how cr*ppy this stock has been and we finally start to get a rally only to get blindsided with more debt and more potential dilution.

I'm also beginning to wonder where the cash flow is going to come from for the LSQ conversion? More equity issues?