Fortress Global Enterprises Inc - Class A FTPLF

RE:Q2 weak, advise wanted

[richerthanthou]

Their MD&A suggests that the next 3 years should be smooth from a revenue stand point. The SNB order goes to 2019 and now they have the Bahamas and Kazakh orders. The smaller denomination Swiss currency also has 3x larger circulation and has not shipped yet. 

The debt maturity schedule has them needing to retire $90 million in debt by the end of 2019. $62 million of that is the covertible debt. The $62 million is also their most expensive debt. They have enough cash for the 2017 and 2018 debt retirements. 2019 is the tricky one. 

If pulp prices stay stable and nothing big happens globally, they should be fine. But pulp prices aren't stable and neither are currencies, hence the 10% discount to par right now. I do think the market is discounting the revenue from the cogeneration plant in Quebec which now gives 6% of total revenue.