FIGIW - An undervalued warrant that you don't have to worry about shareholders voting down:
Fortress International Group is a former blank check company that acquired Total Site Solutions. It plans, designs, builds and maintains specialized facilities (data & call centers, laboratories, etc).
FIGI's 2nd qtr 6/30/07 financials were disappointing showing a sharp drop in sales and a loss of $ .21 per share. However, recent press releases state they have obtained $80 million in new business during the past 9 months.
The CEO, Thomas Rosata, seems to be very optimistic, and during the month of September 2007, he purchased 284,870 warrants at $ .99 - 1.25. Previously he owned none.
Also in September 2007, Mr. Rosata purchased 342,573 shares from $5.55 - 6.72. He had already owned 1,635,555.
A 10% shareholder, Barry Kitt, got into the act by buying 385,000 warrants at $1.15 on 9/26-9/27/07.
FIGIW is a warrant to purchase one share for $5.00 with an expiration date on 7/12/09, over a year and a half away. The stock has been selling around $5.50 - 6.00, the warrant $.95 - 1.00.
Third quarter financials should be reported in the next week or two, hopefully with some good news. Mr. Rosata spent over $3.5 million in September buying stock and warrants, so we know what he expects.
Chuck |
