Author Topic: FIGI.PK - Fortress International Group  (Read 4612 times)

Studesy

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FIGI.PK - Fortress International Group
« on: March 28, 2012, 10:41:47 AM »
Fortress International Group builds server farms/data centres. They are basically an IT construction company.  Have had this one on my watchlist since 2009 when I read a Paul Sonkin interview which mentioned it as one of his favourite holdings.  Sonkin owns about 10% of the company. His purchase was at some point prior to 2008 when figi was a blank cheque co (and significantly above todays price of  $0.50. Fortress originally raised in the neighbourhood of $48mm vs the current market cap of $6.9mm

I noticed this morning that FIGI got hammered...down almost 50%. Quarterly and year end conference call was this morning at 9AM.  I listened in and the only questions during the call where from who else...Paul Sonkin. FIGI is in the midst of restructuring and are definitely having issues.

Here are a couple articles where Sonkin discusses FIGI:

http://www.gurufocus.com/news/79495/paul-sonkin-on-finding-microcap-value-steinway-musical-instruments-inc-fortress-international-group-inc-and-rand-logistics-inc

http://www.gurufocus.com/news/86988/interview-with-micro-cap-value-guru-paul-sonkin

http://variantperceptions.wordpress.com/2010/04/02/fortress-investment-group-fortitude-is-a-virtue/

Does anyone else follow this company?
« Last Edit: March 28, 2012, 11:14:53 AM by Parsad »


Studesy

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Re: Fortress International Group - FIGI.PK
« Reply #1 on: March 28, 2012, 10:45:28 AM »
Conference call can be accessed here:

http://ir.thefigi.com/events.cfm

PlanMaestro

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Re: FIGI.PK - Fortress International Group
« Reply #2 on: March 28, 2012, 11:29:38 AM »
Revenues, where are the revenues. That is a big worry because they should have picked up by now. They are managing expenses and they are being responsible,

http://variantperceptions.wordpress.com/2010/04/18/fortress-investment-group-virtue-sometimes-is-rewarded/

But this might be a sign of deeper LT problems.
« Last Edit: March 28, 2012, 11:32:50 AM by PlanMaestro »

Studesy

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Re: FIGI.PK - Fortress International Group
« Reply #3 on: March 28, 2012, 02:44:58 PM »
Revenues, where are the revenues. That is a big worry because they should have picked up by now. They are managing expenses and they are being responsible,

http://variantperceptions.wordpress.com/2010/04/18/fortress-investment-group-virtue-sometimes-is-rewarded/

But this might be a sign of deeper LT problems.

Nice job on the FIGI.pk write-up Plan! I agree with you on the revenues. With that in mind ...the margins seem to have improved significantly yoy. The question is ...have revenues bottomed? Is the decline due to industry wide economics or is it a company issue?

alertmeipp

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Re: FIGI.PK - Fortress International Group
« Reply #4 on: March 28, 2012, 03:12:52 PM »
What are their competitive advantages? Like if I want a data centre, I would look into the biggies?

PlanMaestro

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Re: FIGI.PK - Fortress International Group
« Reply #5 on: March 28, 2012, 03:31:12 PM »
What are their competitive advantages? Like if I want a data centre, I would look into the biggies?

There are no real biggies. They are one of the biggies thanks to their roots in government. It is basically consulting so it is a fragmented industry. But it is still not that easy for a completely new entrant because relationships are built over time.

FIGI is a cyclical company with cost flexibility and a management that seams to be honest and aligned with shareholders. It is not really a quality business but if it survives it is ridiculously cheap.
« Last Edit: March 31, 2012, 08:07:36 AM by PlanMaestro »

PlanMaestro

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Re: FIGI.PK - Fortress International Group
« Reply #6 on: March 28, 2012, 03:34:12 PM »
Is the decline due to industry wide economics or is it a company issue?

The datacenter industry continues to grow, so I am worried that this is becoming a company issue. The pipeline should have recovered by now.
« Last Edit: March 28, 2012, 03:36:58 PM by PlanMaestro »

theantilibrary

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Re: FIGI.PK - Fortress International Group
« Reply #7 on: March 28, 2012, 11:34:35 PM »
Studesy, can you summarize the Sonkin Q&A on the call (if you remember it)? Damn flip4mac isn't working for me and I haven't been able to find a transcript of the call yet...

Many thanks!

PlanMaestro

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Re: FIGI.PK - Fortress International Group
« Reply #8 on: March 29, 2012, 09:37:02 AM »
Studesy, can you summarize the Sonkin Q&A on the call (if you remember it)? Damn flip4mac isn't working for me and I haven't been able to find a transcript of the call yet...

Many thanks!

Basically he asked when they were going to be consistently profitable and he did not get a commitment. You can use RealPlayer for Mac.

theantilibrary

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Re: FIGI.PK - Fortress International Group
« Reply #9 on: March 29, 2012, 12:58:18 PM »
Thanks Plan.