Plastic2Oil Inc (PTOI)

[Johnik]

I think you went beyond “reading into” what I was saying, but that is not a point worth discussing.

Here is a tip for you though. Rather than reading and quoting from another message board poster’s selective (and reorganized) presentation of the filings, try going straight to the underlying documents. Context is quite valuable when interpreting the intended meaning of specific statements.

Let’s consider some of the examples raised by people as demonstrative of corporate improprieties. How about these posts?

I guess the SEC and FINRA have been digging around for awhile now if there has been a "flurry of requests" already.
Maybe that is why there are so many shares available at .60ish?

Quote from JB's emails filed in the recent court case.
in the past so the SEC looks at these closely which will then in turn cause greater flurry of requests to come from FINRA and the SEC.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57080646

Don't you wonder what the requests from FINRA and the SEC were? I sure do. Not a good thing when both regulators are showing interest much less one, that is for sure.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57082849

Really, the SEC and FINRA have been making a large number of “requests” of JBI? Is the poster suggesting that some form of investigation is underway?

Let’s add some of the omitted language from the email in question to see if it illuminates the meaning of the CEO’s statement.

My concern is how to deal with the employee stock option plan and salary. Cash salaries hit the bottom line hard and don’t look like value-based management. The SEC created S-8 stock (or options) stock to allow a growth company to grow without having to pay exec salaries because the S-8 stock can be sold into the market as cash. They are securities registered for sale the moment I file it. They have been abused in the past so the SEC looks at these closely which will then in turn cause greater flurry of requests to come from FINRA and the SEC.

http://viewer.zoho.com/docs/g4bpaf


Wow, look at that! The CEO was expressing concerns related to the use of a particular form of employment compensation, raised during pre-contract discussions with an employee. I would think it is a good thing that the CEO is giving careful consideration to regulatory compliance concerns when discussing potential employment contract terms.

Now let’s look at the language that you have cited as establishing stock market manipulation, but add some more context taken verbatim from the filing.

Our auditor (Withum) advised there are accounting control issues in Ohio with the accountant and Judy Vasquez (CEO).

UBS (VP Investments) and UMB Bank Fund managers and analysts have advised that this might be the next Henry Singleton and UBS is on the market makers because they believe we are the best stock going. That said, we need to keep the wholly owned subsidiaries in tact, remove accounting to centralized accounting to Philly and have Ron’s team implement controls and reporting/consolidations.

I’ve merged PakIt with our group to work as one. . . .

Okay, so some investment banks spoke favorably of the company, and the CEO expressed the goal of centralizing some operations and implementing accounting controls. You consider that stock market manipulation? Sounds to me like working on efficiency.

Here is the other statement you raised (which preceded the last one by several paragraphs in the email).

I have been doing the public market strategy which is working. I will continue to bring the market price up but we’ll need earnings behind in the short term to keep the momentum with the market. I can keep us at a 1000x multiple with perfect execution of P2O. I need other acquisitions to build a floor on the stock.

This statement leaves the most room for interpretation. I think we can agree that the CEO is likely referring to keeping the market price of the stock up. Of course all CEOs want to do that. What I don’t see is why you think the CEO wishes to keep the price up based on expectations, rather than delivery. Doesn’t he clearly state that he needs “perfect execution of P2O” to maintain a high share price? Is execution not akin to delivery? And how do you infer from this that the CEO is disregarding earnings (or viewing them as secondary)? Keep in mind that you are looking at a single email (or select portions of a single email) that was undoubtedly part of an ongoing exchange of communications between two corporate agents; it is not tantamount to a business plan. Stability, growth, and efficiency should be at the forefront of any start-up’s plans, and I think the emails embody each of those concern. Note that the remainder of that email you quoted focuses on increasing margins (i.e., profit), consolidation of operations, and implementing monitoring and accounting controls.

Context is essential. If you haven’t already, I encourage you to read the actual documents, keeping in mind that the documents at issue have been pieced together as part of a former employee’s case against the company and CEO for allegedly failing to fulfill obligations in connection with the employment arrangement.

In any event, have a nice Thanksgiving. I hope we engage in thoughful and cordial discussions in the future.