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FGE.to - Fortress Paper (formerly FTP.to)


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Here is the press release in English (via Google Translate):

 

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The first employees of the pulp mill at Lebel Fortress Paper-sur-Quevillon start work Monday.

 

The approximately 20 workers, all of Lebel-sur-Quevillon, will prepare the plant for the restore operation. The company Domtar had closed in 2008 due to a labor dispute. Fortress Paper acquired the plant several months ago to make rayon from wood fiber.

 

The work to be performed are numerous: the plant must be replenished with water and electricity, fire protection system must be replaced and the roof must be repaired in several places.

 

"Each time a block is ready, the number of employees on the site will gradually increase," says Chief Operating Officer of Fortress Paper, Marco Veilleux.

 

 

The dream becomes reality

 

The mayor of Lebel-sur-Quevillon, Gérald Lemoyne, is pleased to see the project materialize Fortress Paper: "There were still some skeptics who said it was almost too good to be true. But from the moment that there are employees who start work, people say it's really true. "

 

The hiring process will be spread over a period of 24 months. The revival of the factory should create 300 direct jobs.

 

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Anyone have advice for buying this as a US investor? I've never bought international securities before. Does it make more sense to buy this through the pink sheets or the TSE? There doesn't seem to be a market maker for FTPLF. Would love to get filled at the current price...

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Anyone have advice for buying this as a US investor? I've never bought international securities before. Does it make more sense to buy this through the pink sheets or the TSE? There doesn't seem to be a market maker for FTPLF. Would love to get filled at the current price...

 

We've been buying the OTC to keep it simple.  Its definitely not the most liquid and on several occasions we have been 90% of the daily volume lol.    I'm OK with that though and just place limits and wait.

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Anyone have advice for buying this as a US investor? I've never bought international securities before. Does it make more sense to buy this through the pink sheets or the TSE? There doesn't seem to be a market maker for FTPLF. Would love to get filled at the current price...

 

I bought FTPLF (the pink sheet) yesterday using Fidelity.  I set the limit to what the current ask price was and the trade went though almost immediately.

 

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Is there any more news on future plans for the Dresden Mill (specialty non-woven wallpaper) or the Swiss Landqart Mill (security paper for banknotes, passports)?  Having read through this very informative trail of notes from board members, and a few quite positive  feature articles about the CEO (some of the stories seem too good to be true), the best I can gather is that the market is waiting for the earnings to show up on the table before the full story is believed. I am wondering if in the meantime, the European assets will be viewed as a distraction from the dissolving pulp mainline that appears close to taking over.

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I'd rather like Chad to focus on operational excellence at Thurso and securing some price contracts for LSQ, but I doubt he is planning the latter (and not at current spot prices). He's prone to becoming overconfident if things go well, I don't want this thing to blow up in his face given the macro economic situation.

 

Btw, this company must be one of the most followed on this board; 9 different posters in the last 10 posts!

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Blast from the past from June 2005, Chad's price predictions on uranium were accurate (http://www.uxc.com/review/uxc_PriceChart.aspx?chart=spot-u3o8-full):

 

http://www.firestoneventures.com/i/pdf/2005-06-18_DSN.pdf

 

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"Uranium prices recently rose to about $29 per pound from single-digit lows, said Chad Wasilenkoff, chief executive officer of British Columbia-based Titan Uranium Exploration and a private enterprise, Fortress Financial, that is looking for uranium projects to fund in the United States. “I feel fairly confident we’ll see $50 within the next 12 months,” Wasilenkoff said. In two years, he said, the price of uranium could reach $100 per pound.

 

“Demand is increasing exponentially, and supply is decreasing, especially with high-grade (uranium ore),” he said. More than 30 nuclear power plants are in the planning or construction stage in China and India, Wasilenkoff said, and more nuclear plants are in store for other parts of the world — including the United States — as the demand for energy increases."

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http://www.marketwatch.com/story/fortress-paper-provides-update-on-acquisition-of-pulp-mill-at-lebel-sur-quevillon-2012-04-19-83130?reflink=MW_news_stmp

 

VANCOUVER, BRITISH COLUMBIA, Apr 19, 2012 (MARKETWIRE via COMTEX) -- Fortress Paper Ltd. ("Fortress Paper" or the "Corporation") CA:FTP -0.63% announces that the parties to the purchase agreement for the previously announced acquisition of the non-operating pulp mill located at Lebel-sur-Quevillon, Quebec from Domtar Inc. have agreed to an extension to the closing date. Fortress Paper continues to work diligently with the other parties to satisfy all the conditions precedent to closing, and the transaction is expected to be completed in the normal course as soon as practicable.

 

Funny how the stock is dropping on this news while no one in their right mind can believe that the current stock price reflects any of the future earnings from LSQ. Well, better for us!

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I've been buying OTC in the US and the volume is so low that Im constantly surprised when the orders fill. I cannot understand who is selling me these shares at such a low price.  I'm not complaining or anything though lol.

 

I'm pretty impatient, but these short-term non-issues are really providing a great buying op.

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For the heck of it I mapped my buying points for FTP. Looks like I'm quite impatient as well. But I do prefer to buy small bits instead of big blocks, giving me a reasonable average price. The bigger the dot, the larger the amount I bought for. In March and April I basically moved away from profit elsewhere.

 

Looks like a christmas tree!

 

http://www.pictourl.com/clean/5357d7fb

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Cool personal analysis.  I would do the same, but tend to buy much less frequently and in bigger blocks. It leaves less cash sitting around, but is just easier for me as I have a relatively unpredictable work schedule.

 

For the heck of it I mapped my buying points for FTP. Looks like I'm quite impatient as well. But I do prefer to buy small bits instead of big blocks, giving me a reasonable average price. The bigger the dot, the larger the amount I bought for. In March and April I basically moved away from profit elsewhere.

 

Looks like a christmas tree!

 

http://www.pictourl.com/clean/5357d7fb

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Older video of Chad accepting the 2010 Entrepreneur of the Year award:

 

http://www.bcbusinessonline.ca/bcb/top-stories/2010/09/30/video-chad-wasilenkoff-acceptance-speech

 

I like that he calls the accomplishment a team effort. Having Chad at the helm is the key factor for my investment in FTP. While he is a good salesman, I also perceive a humble quality in him. When the company faces challenges, I think that his hard work and entrepreneurial imagination can allow him to excel where other management might not.

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Fortress Paper Announces New Appointments

 

VANCOUVER, BRITISH COLUMBIA, Apr 23, 2012 (MARKETWIRE via COMTEX) -- Fortress Paper Ltd. CA:FTP -1.17%  ('Fortress Paper" or the "Corporation") announces the appointment of Andre Boucher as Chief Operating Officer of Fortress Specialty Cellulose Inc., a wholly-owned operating subsidiary which produces dissolving pulp.

 

Mr. Boucher has over 30 years of industry experience in the specialty cellulose sector including 24 years at Tembec Inc. where he was the General Manager of the Temiscaming dissolving pulp mill. Mr. Boucher was responsible for overall mill optimization and development of specialty products, including a full range of acetate and other specialty pulps. Most recently, Mr. Boucher was General Manager of Ethanol Operations for Suncor Energy Inc. where he developed the facility from concept to an efficient operating mill.

 

Chadwick Wasilenkoff, Chief Executive Officer of Fortress Paper, commented: "Andre brings a wealth of experience and technical talent to Fortress Paper at a time when we are growing our dissolving pulp business. We feel his mill optimization and unique experience in transitioning a viscose-grade dissolving pulp mill to a specialty-grade dissolving pulp mill will further enhance our already strong specialty cellulose team. Andre's addition provides us with more flexibility as we balance our key personnel between Thurso and our other strategic projects."

 

In addition, Fortress Paper is pleased to announce that Marco Veilleux has been promoted to Vice-President, Business Development and Strategic Projects of Fortress Paper from his former role as Chief Operating Officer of Fortress Specialty Cellulose Inc. Mr. Veilleux was an important member of the executive team which managed the successful staffing, startup and conversion to dissolving pulp at the Fortress Specialty Cellulose Mill. Mr. Veilleux will focus on special and strategic projects, manage risk and compliance matters and will assume other key corporate responsibilities within Fortress Paper.

 

http://www.marketwatch.com/story/fortress-paper-announces-new-appointments-2012-04-23-831140

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This is good news. I think the biggest sources of uncertainty in this situation are their ability to execute on the new business (which I think is essentially a non-issue) and the future price of dissolving pulp (especially with new production coming online in many places).  Hopefully, the specialty business should help move them into an area with a bigger moat. 

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