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

[Liberty]

You can find a lot of information here: http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=FTP&t=LIST

 

I write sometimes there and sign:   eddyc.

 

 

ECCO

 

Thanks for the link, ECCO. That's an interesting site. They also cover Altius, but not some better known companies like WRB, MKL, RLI, etc.

 

Do you know of other sites that have message boards/mailing lists that cover companies like the aforementioned or other favorites of this board like FTP, ALS, etc?

[ECCO]

You can find a lot of information here: http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=FTP&t=LIST

 

I write sometimes there and sign:   eddyc.

 

 

ECCO

 

Thanks for the link, ECCO. That's an interesting site. They also cover Altius, but not some better known companies like WRB, MKL, RLI, etc.

 

Do you know of other sites that have message boards/mailing lists that cover companies like the aforementioned or other favorites of this board like FTP, ALS, etc?

 

 

I go on stockhouse just for FTP, there is some people there that are quite fast to bring new informations. You will see that some seems to try to pump the stock, but overall there is many good poster on the FTP forum.

 

If you want to read more about FTP, here is some good place:

 

 

http://investlikeanentrepreneur.com/category/fortress-paper/

 

http://www.valueinvestigator.com/en/valuefavourites/ftp.php

 

http://www.theglobeandmail.com/globe-investor/fortress-paper-outside-the-box-crazy-like-a-fox/article1685409/

 

and this one that is very interesting:

 

http://www.parl.gc.ca/Content/SEN/Committee/403/agri/07eva-e.htm?comm_id=2&Language=E&Parl=40&Ses=3

 

 

ECCO

 

 

 

[Liberty]

Thanks for the links, ECCO.

 

FTP is really getting no love lately. Down almost 5% today.

[henrysalt]

Thanks for the links, ECCO.

 

FTP is really getting no love lately. Down almost 5% today.

 

Where is the bottom? Down another 3.5% today.

[Liberty]

Where is the bottom? Down another 3.5% today.

 

I'm wondering the same thing. It's still up over 50% for the year, but it's losing ground pretty fast. Mr. Market is feeling depressed...

[accutronman]

Received my proxy material yesterday. A quick look over found two interesting items: proposing a 3 for 1 stock split, and a $13.5M bonus for Chad.

[biaggio]

that sounds good for Chad

 

what do other shareholders think?

 

I understand that trailing earnings is not how to look at this company. There are some projects that look like they have great promise. Should we not wait till we actually see results  earning, etc. from these projects. How does he justify the bonus. (I did not read  the proxy info, sorry if this is a stupid  question. $13 million seems like a lot of money relatively to this companies past earnings.)

 

The share price growth + the old acquisitions are very impressive. How he pays himself would be very important in judging this Co as a  jockey/owner manager type of stock.

 

 

[Liberty]

More details here:

 

http://quote.morningstar.com/stock-filing/Proxy-Statement/2011/5/19/t.aspx?t=XTSE:FTP&ft=&d=36e4f3f96f5c2a4d1805ca744f36206a

 

The Board and the Chairman and CEO negotiated a new employment agreement for a six year term.  The

contract includes an increase of base salary to $1 million, eligibility for a discretionary annual bonus  and a

special one-time performance bonus consisting of a combination of cash, RSUs and DSUs designed to  reflect

the Chairman and CEO's expanded role due to the successful acquisition of the Fortress Specialty Cellulose Mill

and entrance of the Corporation into the dissolving pulp business.  The annual discretionary bonus for 2010 was

$1.5 million. The special one-time performance bonus in the aggregate amount of $13.5 million consisted of a

$3.5 million cash payment made in relation to the achievement of specific performance goals aligned to the

successful acquisition and integration of the Fortress Specialty Cellulose Mill. These included:

Obtaining the financing to purchase the  Fortress Specialty Cellulose  Mill and required

equipment for the conversion project;

 

Hiring key management to plan and supervise the conversion of the Fortress Specialty Cellulose

Mill;

 

Establishing dissolving pulp supply agreements on favourable terms; and

Successfully re-starting the  Fortress Specialty Cellulose  Mill to produce NBHK pulp on an

interim basis pending completion of the conversion project. 

 

The remaining $10 million of the special one-time performance bonus was granted in various units  under the

Corporation's 2009 Long Term Incentive Plan ("LTIP")  each aligned to the long-term success of the

Corporation generally:

 

$5 million granted in performance-based RSUs that will vest pro rata in annual tranches for the

five fiscal periods commencing from January 1, 2010 and ending December 31, 2014, based on

a formula that considers the fraction by which the cumulative amount of the consolidated

EBITDA of the Corporation approaches $225 million during this period. This is intended to

reward the CEO for growing the business for shareholders and will be heavily dependent on the

success of the Fortress Specialty Cellulose Mill; and

 

$5 million was granted in DSUs that will pay out at such time that the Chairman and CEO

leaves the Corporation. This will tie the Chairman and CEO to the long-term performance of the

Fortress Specialty Cellulose Mill and the Corporation through the link to share price.

[Liberty]

Picked up some FTP today. It appears undervalued by almost any measure.

[keerthiprasad]

i can't believe they are this cheap and will likely have eps of 6-7 next year...the market is crazy.

[biaggio]

Its dropping like a rock. Down another 8% today.

 

Technically it looks bad http://stockcharts.com/freecharts/gallery.html?FTP.TO ( I am not a technical guy but I sometimes use short term for entering + exiting)

 

There must be significant doubt re earnings (sorry if that is obvious or stupid). As well industries they are in are cyclical.

 

Approaching 4 x earnings if it can earn $7 per share. Cheap even if it is a commodity/cyclical company.

 

Still watching.

 

 

[finetrader]

cotton spot price is going down.

Might be a reason why FTP stock price is not doing well.

[Liberty]

cotton spot price is going down.

Might be a reason why FTP stock price is not doing well.

 

What source do you use for that? I found a couple sites with cotton spot prices, and one of them shows a small decline, but nothing dramatic. Maybe I'm missing something.

[finetrader]

^{What source do you use for that? I found a couple sites with cotton spot prices, and one of them shows a small decline, but nothing dramatic. Maybe I'm missing something.}

 

it's the futures actually (not spot price):

 

http://www.bloomberg.com/markets/commodities/futures/

 

http://futures.tradingcharts.com/chart/CT/W

 

so it went something from 200 to 150, a 25% drop.

[rjstc]

^{What source do you use for that? I found a couple sites with cotton spot prices, and one of them shows a small decline, but nothing dramatic. Maybe I'm missing something.}

 

it's the futures actually (not spot price):

 

http://www.bloomberg.com/markets/commodities/futures/

 

http://futures.tradingcharts.com/chart/CT/W

 

so it went something from 200 to 150, a 25% drop.

I'm trying to study/learn about this stock. One really dumb question I have is the cotton connection. How does it relate to them? Thanks

[nodnub]

^{What source do you use for that? I found a couple sites with cotton spot prices, and one of them shows a small decline, but nothing dramatic. Maybe I'm missing something.}

 

it's the futures actually (not spot price):

 

http://www.bloomberg.com/markets/commodities/futures/

 

http://futures.tradingcharts.com/chart/CT/W

 

so it went something from 200 to 150, a 25% drop.

I'm trying to study/learn about this stock. One really dumb question I have is the cotton connection. How does it relate to them? Thanks

 

Invert this: http://specialtycellulose.com/weather-causes-cotton-prices-to-soar.htm

 

I would guess that lower cotton prices may lead to lower prices for rayon (the two can sometimes be substituted), and therefore lower prices for dissolving pulp (used to make rayon).  

 

I think that Fortress converted some pulp plants to be able to also produce dissolving pulp, since the demand and market price for dissolving pulp was really high at that time. (Still pretty high, I believe)

 

 

 

[Liberty]

Interesting. But in practice, cotton prices shouldn't have a big impact on the DP plant they already have, as more than 70% of the production is locked in long term contracts (5 and 10 years, iirc) at prices between 1200 and $1800/ton. Could affect new DP acquisitions if the trend continues, though.

[rjstc]

NODNUB; Thanks for that. It will be interesting to see how this plays out.

  I read in one report that new crop sales of cotton for 2011-12 commitments for marketing year beginning Aug 1 is 6.5 times forward sales of one year ago. Production is expected to exceed mill use and world ending stocks are increasing to about 46 mil bales from 39 million.

[Liberty]

Quarter results coming tomorrow after market close. Selling at 28.85 right now (410m market cap), seems VERY undervalued based on current info, but we'll see what they say on the conf call on Wed...

[ECCO]

Here is some info for those who wanted to know more about FTP:

 

http://pretoriainvestment.wordpress.com/2011/06/13/fortress-paper-update/

 

and here (in french) it talks about FTP buying Lebel sur Quevillon Domtar's plan by mid july:

 

http://lechoabitibien.canoe.ca/webapp/sitepages/printable.asp?paper=lechoabitibien.canoe.ca&contentid=194870&annewspapername=L'%26%23201%3Bcho+Abitibien%2C+le+Citoyen+de+la+Vall%26%23233%3Be+de+l'Or+et+de+l'Harricana++

 

 

ECCO

[bathtime]

Did anyone here attend the annual meeting yesterday?

[Liberty]

Q1 results:

 

 

http://www.marketwire.com/press-release/fortress-paper-announces-first-quarter-2011-results-tsx-ftp-1526836.htm

 

Conference call tomorrow morning.

[Liberty]

3 for 1 share split passed.

 

Looks like they want to do some buybacks:

 

http://www.theglobeandmail.com/globe-investor/news-sources/?data-ipsquote-timestamp=20110615&archive=ccnm&slug=201106150705095001

 

Fortress Paper Ltd. ("Fortress Paper") announced today that the Toronto Stock Exchange (the "Exchange") has accepted Fortress Paper's notice of intention to make a normal course issuer bid for its common shares through the facilities of the Exchange or any other Canadian public marketplace or alternative trading system. On June 17, 2011, Fortress Paper may commence making purchases, from time to time, of up to a maximum of 427,149 common shares, which represents approximately 3% of its 14,238,331 issued and outstanding common shares as at June 14, 2011, provided that the aggregate purchase price of such common shares does not exceed $10,000,000. Fortress Paper believes that the current market price of the common shares may not fully reflect the value of Fortress Paper's business and its future business prospects and that the normal course issuer bid represents a desirable use of corporate funds. Any shares acquired will be purchased at the market price up to a maximum of 15,289 common shares per day, subject to the block purchase exemption, and will be cancelled following purchase.

[Liberty]

I just listened to the Q1 call. DP is on track, exchange rate putting some pressure, but they estimate it at around 650/ton shipped, and 1900/ton as a 'sustainable' price for DP, so that's an excellent margin. They looked at acquisitions for non-woven wallpaper but didn't find anything that had the right equipment, so they're looking at expanding some more within Dresden.

 

Nothing specific about a new DP acquisition, except that they're still looking, but a quebec paper quoted the mayor of LSQ saying that an announcement could be made bout the Domtar plant there within about a month, and the rumors are that FTP is the potential acquirer. we'll have to wait and see..

[biaggio]

http://www.fortresspaper.com/pdf/Fortress_Paper_Powerpoint_(Jan17,2011)website_June_3,_2011.pdf