Fortress Global Enterprises Inc - Class A FTPLF

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: Lets h

[mr1derful]

You have to look at what was the motivation behind a lot of the DP increase. Being a traditional pulp producer was a low margin and highly capital intensive business where returns were low. If you were a traditional pulp producer and you saw DP prices at $2,000 a ton what would you do? The problem is if every pulp producer thinks the same thing by converting to DP then you will eventually have overcapacity in DP. The DP business looks a lot like the traditional pulp business and who would want to invest any kind of a pulp company? The irony is that lumber producers and OSB producers such as West Fraser, Ainsworth, and Norboard are making a fortune right now because the US housing market is just beginning to recover.  The windfall these companies have made has allowed them to reduce debt significantly that by 2014 these companies will have net cash on the balance sheet. Meanwhile, FTP shareholders are holding an over leveraged company that is not generating adequate cash flow while they wait for Chad to appear on BNN and pull a rabbitt out of the hat.