FTP – Fortress on a run

What is happening with Fortress Paper? Stock surged 15% in the last 2 days without any news release or important information coming out.

I could see 2 catalysts:

  1. An analyst changed it’s target price based on Dissolving Pulp price. DP market prices are really hard to find or follow. They were around 1600-1800$ in November and 1100$ in December. What they are now, it is anybody’s guess. You may read analyst analysis here.
  2. It has been over a year now that we heard rumours in Quebec that Fortress was in negociation with Lebel to buy a big pulp plant out there.  This week, new rumours were heard regarding head-hunters calling job-searchers for management opportunity in the “pulp” business in Lebel.  The deal may be close to completion.

Disclosure : Authors is Long FTP.

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4 comments on “FTP – Fortress on a run
  1. Brett says:

    So what your take on FTP? Whats is worth? Great website. Keep the posts coming. Thanks.

  2. Brett says:

    Did the acquistion go through? Was that why the stock moved today? Should I add more? Thanks.

    • Dominic Nadeau says:

      Yes Lebel was confirmed today, Quebec government got a press release out with conference tomorrow morning

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