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I agree with most of what you say. But the concern I have, and the one that it consistently ignored here, is the funding of the operations. Although it is a better waynto fund through private placement rather than VC, shareholder dilution, particularly in JUNE, is a concern going forward. I was quite surprised there were no other fuel sales aside from Coco, contrary to many peoples thinking, and that still is a concern. I haven't yet dissected the entire 10q so I am not sure at this moment how much fuel is inventoried. But IF the processor was running as we have heard I would hope to see something there. If not, where is it? Oh, yeah it was given away for testing to some unknown companies. Didn't see that in there yet, either.
This company needs to use NF as a funding source for future vc's. They need more large customers NOW.
We heard numerous times how much fuel per day the processor makes, how much it's worth... Well this 10k shoot many holes in all of those guesstimates.
IMO they should be securing a fuel supply contract with RKT at the nearest facility. I am quite sure the cost of shipping the fuel could be managed if margins per barrel are what has been claimed. They need cash flow to continue this build-out in a efficient manner.
All IMO.
C911
Agreed. I was quite accurate with my approximate sales of p2o of about 50k. It was apparent that the Coco deal was the only real sale they had. From what I see OXY seems to have been a one shot deal. Anyone know that not to be true?
Although the build-out appears to be in full swing, the lack of customers for current fuel from NF is a concern. It would be better to fund operations through fuel sales from NF than to continue to dilute shareholder equity.
But overall, pretty much what I expected to see.
IMO, JBII won't be cash flow positive till late spring 2012 and maybe show a net profit in early 2013.
All comments are welcome this is just IMO.
C911
Yes, but we are at least a year away from seeing fuel from RKT processors IMO? Tell you what, if JBII is producing fuel at an RKT site by the 2012 AGM I will by you a steak at the hotel. If not, you buy. Deal?
He didn't say they were selling fuel. Just filling tankers. I have asked numerous time about revenue and sales and I have yet to get a straight forward FACTUAL answer. First it was being given away for testing, but not for free, then it was for free. Why does this fuel need testing if it has been verified and tested by 5 different prominent labs? That's straight from the company.
Nobody knows. Anything hears is pure conjecture and speculation beyond the Coco deal and the tanker sold to Oxy.
I doubt small retail sales are being done, because JB said himself he wasn't interested in that.
So sales in the 10k will be very small IMO.
As I have stated before, guidance will dictate the day.
C911
Yea, I am more concerned about what will be said going forward. Would be nice to have a conference call from the boss.
I expect less than 100k. Coco is the biggest deal we know of and that was signed around June 10th. The quarter was over 3 weeks after. Fuel sales for the quarter may be less than 50k.
I would be shocked if it were more than that.
C911
I don't know if it is a problem, but it would be nice to know the hold up. I was told by IR it was almost done...in June! It's frustrating to say the least.
I just want to see sustained sales. And a second processor online...finally.
I just want to see sustained sales.
Yes, all true. But I have asked this question to all a dozen times with NO specific answer.
Where is the money to sustain operations going to come from?
Just give me a FACTUAL answer.
They have a workforce, acccording to John, of about 80. They are selling only about 30,000 dollars of product a month.
Where is the money going to come from, PLEASE somebody, anybody be specific!!!
Thanks for all your work!
Anyone on the board who has any factual input on this, I would love to here it!
Holding tight!
C911
We know that they can make it, we need to know that they are selling it NOW at a pace and quantity sufficient enough to sustain operation for a considerable amount of time. Like a year or two until they are established on RKT sites and hopefully others. ( I do believe there are others being worked on)
They need number 2 up and working.
Just guessing, speculating, that they are working on a feed process in which they can feed multiple processors simultaneously with minimal manpower. But then again what the he'll do I know.
C 911
Good dd brother. Let's keep a check on that.
Boy, Raw, I hope your right.
I'm sure they do have reasons. I have a GUESS why. But it would be nice to here from the source what is the situation. The stock at the moment, is probably where it should be. It's true that companies are valued going forward, but they have to show tangible numbers to justify even forward stock price.
Until they have a multi million dollar deal this is what you have, a languishing SP. And you can't have a solid multi million dollar deal until you can produce enough fuel to fill the contract. AND you can't do that without a few more processors.
To who? who are they selling it to? Be specific. Fuel companies truck fuel all over. Part of doing business. They need sales!
BUT can they execute before they run out of cash or dilute the company?
And the second one is in it's seventh month and..ain't done yet.
I just want to see enough fuel produced and sold at NF to sustain this company until they
Begin the RKT build out. And right now I am NOT seeing anything close to that and neither is anyone else.
The proof will be in the filing and hopefully a corresponding statement from the company with some forward guidance.
C911
I dunno Brig, I am long as well, but it's been since Feb and we are still waiting for the second processor to come on line. Do you really think JBII can get all the work done and have processors running at a RKT site by Feb. 2012?
That might be a stretch.
C911
I am with you on that. Here's another question. We have been told numerous times how much fuel the processor can make. We know the current customer, pretty much. So we also have an idea of how much fuel SHOULD be left over not sold. Looks like a couple hundred barrels a week or so.
So, my question is, why isn't RKT a customer NOW? Why aren't we selling fuel to them prior to setting up shop on their property?
At an alleged margin of nearly 90 percent, we should be able to truck some down to Ohio or to the nearest RKT facility.
Anybody care to provide any input, please do.
C911
Three processors running full speed 24/7, producing and selling every drop of fuel the make. Now an annoncement like that, would indeed impress me.
Knowing when and where the first plug and play set w up was going to be would be helpful.
Knowing if the!niagara falls production plant was running and selling fuel on a daily basis wolf be helpful.
Knowing that promoinent business man well versed on taking start ups to the next level
Would be helpful.
Knowing that somebody has a.clue as to 'what a deadline ismwould be helpful.
Just some helpful thoughts.
c911
Lol 22k shares constitutes the market? In the first 10 minutes of the day???? Get real.
It would be good to see JBII apponit a board member with experience in expanding small companies. Someone who can rapidly execute and secure financing streams.
The replacement is an important one.
C911
To me, the real question is what costs are JBII going to incur that any other new business would not incur. Every business has costs specific to their particular business. JBII is no different. IMO the fact that they need NOT search out locations is huge. Free space, and free free stock on site along with the fact that you are sitting on the property of your number one customer.
Every "cost" JBII still would have had without RKT. PLUS they would have needed funds to acquire property pay taxes on the property, maintain the property...
So the RKT deal is a no brainer which will save the company money.
The big unanswered question is can they put it all together?
Will RKT be willing to assist in financing? Maybe, if they like what they see after the first processors are installed on there site.
We do know that JBII raised nearly 5 mil from the PIPE in March. Perhaps a portion of that is set aside for the first site set up with RKT?
Personally my hopes are that JBII will do both. Set up there own sites and continue to pursue more jv's. But that's quite a ways down the road.
Right NOW I would like to see the NF facility running at full capacity. Both processors up and running and selling fuel. Basically progress on a tangible scale.
Good luck all!
C911
I choose not to take any action.
Been burned by this before. Are they making money? Last I heard they were in litigation about Indian land...switching majority interest... Anything relevant going on with them?
Yes it is. Is this company even doing business anymore?
Thanks Paula! Nice to come over to a board with some sanity.
I only have one post a day right now...somthis is it. HOOOOOOLY CRAP!!!!!!!!
Can you elaborate on your conversation????
Um I think you must be publicly traded to get a WN. They are still private...
How I love common sense!!!!
Me neever!
Yes, the proof, one way or another will be known. Then, all can act in their own best interest. As we should.
That would be nice!!!!
Thanks for that follow up with JZ. I too am a long and the questions I ask are not meant to bash JBII. The only question I have is that if they are only giving away 300 or so gallons, what is going on with the rest? I wish you could have asked that. But we will find out soon enough.
I have a call into JZ, but haven't heard from him yet. I have spoken to him before and he always answers my questions. I just always forget to ask something.
If it is perceived that I am a bashed of JBII nothing could be further from the truth. I am heavily invested as is my 6 yr. Old daughter!!!
I just have questions that I feel are important. Where the fuel is going, whether they are or aren't being paid, how much they are making, and when will they be able to make more are all legitimate questions. And the answers, one way or the other, will affect the pps.
If the answers are positive we go up if perceived negative we go down. Right now the silence from the company, coupled with the bs lawsuits and WN are dragging the stock thru the mud.
I and friends of mine have been buyers on the dips. I am a accumulator. And, like you, wish I had more dry powder at my disposal.
Again, thanks for taking the time to call the company. Good to see people with a little gumption!
C911
Looks like Anslow and Jaclin will be the companies highest paid contractor for a couple years.
Join the club.
Well 385 barrels a week is a lot of miscellaneous sales!! 6x as much as the Coco deal. I was under the impression the JB wasn't interested in those smalls sales. In fact I am quite sure I read that on this board MANY times.
But I agree, we will see very shortly.
Yep this is a long term deal. But they need to generate cash at least enough to keep the doors open.