At this point Fortress does not have the luxury of being able to pursue the specialty DP segment. I recall reading that there is significant cost and time involved in having specialty DP capabilities. If it were easy to enter the specialty sector you would see the same kind of supply response(and price collapse)as what you saw in the dp sector.FTP has spent all this money on cap-ex but has yet to see any cash flow from Thurso.The business model of this company is broken especially when we found out that the hedges put in place to ensure that 84,000 tonnes of annual production would at least be priced at a floor of $1,200 per tonne were not going to be honored. The whole dp sector is starting to look more like the pulp and newsprint industry where pricing is competitive and the companies have a lot of debt and earn low returns.Let's face it. The shareholders of FTP have been duped by management.
To add insult to injury. While FTP has been a complete dog of an investment there were so many opportunities to make money in the forest products sector. Just look at companies like West Fraser and Ainsworth which are seeing continued strong pricing in their respective products of lumber and OSB thanks to the pickup in the US housing market. Housing has been so lousy for so long in the US that we are going to see pent up demand much like what we are seeing in the US auto sector.My two cents.