4/05/2010

FIGI: Fortress International Group

FIGI was added to our list on 08/14 @.65 and the positive conference call helped move the stock higher even with cost savings pink sheet listing.

http://www.shadowstock.com/ss_portfolio.html

more importantly PlanMaestro posted a great write up yesterday “Fortress International Group: Fortitude Is a Virtue” .

http://seekingalpha.com/article/196866-fortress-international-group-fortitude-is-a-virtue

my comments on the post were

“I was surprised to hear institutional analysts on the call from Morgan Stanley and Oppenheimer. Thought I was the only one building a position before the call the other day :)

Norman H. Pessin just increased his position to 929,284 based on the 13d filed on 04/04/10. As you know Paul Sonkin and Hummingbird have been holding tight as other value shops such as Pinnacle threw in the towel. Back in 07 the Baupost Group held a large position but they also sold out.

I’m optimistic based on the following

cleaner capital structure
3.5-4.00 million in the improved cash balance
reduced size of board from 9 to 6
reduced costs from pink sheet listing
Rubican sale and related obligations
recovery of 1 million dollars on previously written off bad debt,
management’s commitment to being cash flow positive for 2010
new large contract wins
these are a few of the reasons to be optimistic.”

3 comments:

Anonymous said...

Great call, nicely done. Hope you enjoy a thick steak and fine glass of bourbon on that ~100% return!

Robert Pio Mollo said...

I have had Fortress on my radar for quite awhile too. When I read that one of the directors had converted a substantial note into equity at a higher price than market value; I twigged it straight away that Fortress was going to go higher. Unfortunately though, I got too greedy (I wanted it for less than $0.60!) and by the time the conference call occurred, the thing just took off.

I think that highlight insider purchases like you've been doing is a sure-fire way to ferret out stocks with upside-potential. Keep up the good work.

ShadowStock said...

Thanks for the notes,

FIGI still has value at these prices, imo. I even added more shares around $1.10 to my diversified portfolio.