Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 14, 2011

Article Excerpt

FORTRESS PAPER, $41, symbol FTP on Toronto, is an international specialty paper producer. In April 2010, Fortress bought an idled pulp plant in Thurso, Quebec, for $3 million. It then restarted pulp production at this plant. That has been contributing to the company’s revenue and earnings. Meanwhile, Fortress has been converting the plant to produce a type of cellulose called dissolving pulp, which is mainly used in viscosefibre, or rayon. The conversion should be finished in early November. Dissolving pulp prices are high, and Fortress has already signed contracts with companies in China. In addition, Fortress is building a 25-megawatt biomass-fuelled cogeneration plant to supply power for the Thurso plant. This facility should be finished by late 2012. Biomass plants burn plant materials and waste. This plant will use biomass from the Thurso plant. The company may also tap into a local network of suppliers of wood chips and other biomass. The plant uses a cogeneration process to generate additional…