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News: Cereplast to Raise Approximately $7.5 Million in Registered Direct Financing
http://www.marketwatch.com/story/cereplast-to-raise-approximately-75-million-in-registered-direct-financing-2010-06-10?reflink=MW_news_stmp
That should be our last one before we're cash-flow positive!!!
Saw a great quote the other day while watching a speech that RMI's Amory Lovins gave at Autodesk University in 2009.
"Only puny secrets need protection. Big discoveries are protected by public incredulity."
--Marshall McLuhan
I find this to be quite relevant to the discussion of JBI's Plastic2Oil on this board.
Tykun
It's OK EP.. for every 1 lost soul who bashes JBI and questions your posts there are 20 of us "silent" ones who agree with you 100% and who have invested in John and his word, and don't really care at all that the share price is under our average these days.
As the Rev put it earlier today: may we all get what we deserve.
Stu/Tykun
And even is scammers and manipulators don't destroy the value of retail investment, there's no guarantee that ... uh... umm...
gosh.. I think we've reached the end of the line there folks! If scammers and manipulators don't destroy the value of retail investment, then JBI shareholders may in fact make money after all.
Cool! I'm in.
Nicely done. I too couldn't believe it was under $3, and put an order in at $3.05 at the open. But I missed their news (released 30 mins before mkt open), and it never filled. So I chased it to $3.60. Still, what a bargain!!
And here today too! Up 35% as I type this, on very impressive volume.
Maybe the NASDAQ has finally given CERP the visibility is deserves, and people/institutions are stepping in?
I'm gonna say $10 by year's end. Anyone agree/disagree?
Tykun
Fingers crossed!!!
Yes, their last Q made it quite clear they'd need to raise money again before reaching their objective of being cashflow positive in the 3rd quarter.
I would expect & hope that they only do this once more, and they should need only a few million unless I'm mistaken.
Hmm, yeah.. but actually upon re-reading, that's the same news they released on May 12: "2010 revenues will increase by a minimum of 190% to between $8m and $10m."
So the volume is +400%, but the revenue is "still" only +190%.
But I still like it, and I like CERP's potential! I just bought some more today after the open.
News: Cereplast Expects to Ship 16 Million Pounds of Bioplastics in 2010
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100608006131&newsLang=en
...and based on the CEO's statement here:
http://ceocfointerviews.com/interviews/CERP-Cereplast.htm
where he says "The price of our bioplastic resin vary between .85 cents to.$1.3 per pound", that's anywhere from $13m to $21m in revenue. Already a big step up from 2010 guidance given last month!
Go CERP!!!!
Does anyone know if some PIPE shares came off restriction lately? Except for profit-taking, I don't understand the steady drop in PPS here lately.
This company has so much going for it: has given guidance some very solid revenue for 2010, predicted cash-flow positive during Q3, has a superb management team, a industry pioneer at the helm, and is armed with patents that present a great barrier to competition.
If I didn't have any idea about the company's PPS in the past, I'd say it should trade around $5-6 now, and $10-15 late this year when they have proven they are profitable.
And they keep signing contracts with new buyers!
$3 can only be because of PIPE shares bought for $2 are now freely tradable. Any thoughts?
Tyk
Update: found this in the 10Q from Sept 09:
"During the nine months ended September 30, 2009, the Company issued 33,326,819 shares in exchange for gross proceeds of $1,666,341 under private placements"
post-split, that's $2/share. That would explain it.. I hope!
I doubt it, since JBI uses it in it's "afterlife" state. The price of coke or milk or coffee cups will go up though, since they are the products that are priced to reflect the cost of plastic.
Tipping fees.. only if they go down will P2O have to compete for plastic waste. And that isn't likely to happen anytime or anywhere!
Stu
And the last line of the article Mr. Mayor publicly suggests shorting the stock.
Bravo if he did it at $5. "Bon Courage" if he does it today.
For those of you who 1) speak French, and 2) want a good laugh (the latter requires you to be a JBI "believer"), here is an article written in the Swiss daily newspapger AGEFI by Marc Mayor.
http://tinyurl.com/marc-mayor-gets-it-wrong
Mr. Mayor does not work for AGEFI (an otherwise reputable business & finance publication), but is a freelance writer for them and has a column called "The Insider's Corner". This article is his feeble attempt to debunk the P2O myth, and clearly shows that he spent less that 10 minutes researching the technology, the industry, and specifically the claims JBI is making with Plastic2Oil(TM). For example, he claims that only clean sorted plastic is accepted. Maybe he's ignorant, or maybe he just doesn't read English and hasn't reviewed JBI's statements to this effect, but it's a pretty fundamental mistake.
The same pretend-journalist (he gives journalists a bad name), has his own website which is fit only for 2am infomercials:
http://www.lecoindesinsiders.com/profit
On which the first paragraph reads:
How to Invest in the Stockmarket and Earn 60% in 6 Months! Welcome, Marc Mayor here, the "Money Making Maniac". If you want to multiply your gains by 1061, close 9 profitable transactions out of 10, and a GUARANTEED profit of 60% minimum in 6 months, you're in the right place".
It's hard to believe AGEFI prints his crap.
People, have you all forgotten about THE killer product that was announced at the AGM?
I have 3 words for you:
Pak-It Bubble Bath
If the Chinese get wind of this, I wouldn't want to be short on JBII!
--true
--good point
--I agree
--you're right
--true
--true again
--excellent point
When you look at it like that, any person in their right mind would have to agree with you.
A "ton of people have lost a ton of money"? I didn't realize that. I know plenty of people who have bought JBI at $5-7, and none of them has sold a share yet. I guess you know people who have -- please send them my condolences.
If somebody had invested in JBI at $7 after doing their own DD, and then sold recently around $2, then something must have changed in their beliefs. If not, they wouldn't have sold at a loss.
And there is plenty of so-called DD (both pro-JBI and anti-JBI) posted here multiple times per day. I don't consider any of those posts to be nearly sufficient to make an investment decision in JBI.
So, no -- investing with intelligence is not a numbers game.
Stu
But the fact that JBII(E) is a "penny stock" does not in-itself have any bearing on the legitimacy and future revenues of the company. If you invest based purely on statistics, then you'll surely stay away from JBI.
But if you invest based on DD and fundamentals, then the fact that the company is on the OTC or pinks should not come into play at all, except for the short-term PPS madness that is expected.
So if investing for you is "a numbers game", then I understand better why you're not buying JBII.
To each his own.
Stu
Well even at $10 they won't be getting any of mine. If P2O works as advertised, then with time the share price will be high double-digits / triple-digits. It's merely a question of ramp-up speed.
Their initial "2500 sites by 2020" is aggressive -- but if they do 10% of that we're into some very exciting numbers.
Doesn't sound like "full access" to me!! Contempt of court!!
EP, you're our resident poet -- eloquent, balanced, and non-emotional. I concur with your assessment 100%. And in that light, don't you think it was just amazing that we got to buy JBI shares under $2 AGAIN??
Twice-in-a-lifetime opportunity, is what it was.
Looking forward to the next chapter in this story!
Stu
Our plastic nightmare, now on video:
http://www.utne.com/Wild-Green/Our-Plastic-Nightmare-Now-on-Video-7364.aspx
Article from LA Business Journal:
http://www.labusinessjournal.com/news/2010/may/31/bio-plastics-makers-stock-slips-despite-positive-s/
Sure, here it is again with the removed references to things that didn't violate the TOS at all, but clearly upset somebody.
----
OK, one more time for the people having a hard time following the science:
The "yield" that JBI claims is 98% refers to the cracking of EXISTING long "plastic" hydrocarbon chains into shorter diesel, gasoline, and natural gas chain lengths. This is not a claim that HC chains are being formed or created, merely broken at a desired length.
Repeat: 98% of the MASS of the existing hydrocarbon chains are broken into one of 3 chain lengths: 77% diesel, 13% gasoline, 9% natural gas. That leaves about 1%, which is the "residue".
That does not make any statement about what happens to paper, wood, metal, glass, oxygen, chlorides, ink, or any other material that is process with the "dirty unsorted plastic", which it would naturally have. What goes in will come out again, except for the plastic polymers that will be efficiently broken into valuable fuels.
[removed]
The bottom line is 1kg plastic yields 1 litre of diesel/gasoline. If your "mixed plastic" is in fact 800g plastic and 200 peanut butter, then the number you need to use is 800g.
Scandle, you can't just go talking about the "real world" around here you know. Some people might get offended.
Or because board members were elected to represent shareholder interest, and they themselves have a very large amount of shares that they purchased BEFORE becoming a board member on the open market, and want to hold the CEO to his word about P2O working and therefore increase shareholder value.
See the 8K's.. they don't like
You and at least a half-dozen others here appear to be saying that this company fits the mold of other completely unrelated scams.
And while statistical probability may be on your side, it's simply inadequate to make an investment decision based on that.
How much do you know about JBI -- the people behind it, their backgrounds, their reputations? Have you met with and/or spoken to any member of the management team or board? They are mostly very approachable people and make themselves available to shareholders. Why don't you give it a try... make a REAL effort to distinguish this company from the cookie-cutter scam artist model you appear to have so much experience with, instead of taking cues from iHub posts and making judgments with a keyboard and mouse?
So you are basing your "research" on what the CEO of the company could do because he has voting power, and not what he has done in the past?
Interesting approach. Good luck with that.
That's the worst piece of so-called "due dilligence" that has been posted on this board, and there's some pretty stiff competition too!
mixed plastic is predominantly PET
Really? See good due-diligence would show that PET is a valuable recycled plastic, and in many countries is the single-most recycled plastic. It's not economical to use PET in P2O, since you can get paid more for it on the plastic market.
Sorted HDPE is more expensive than the oil used to make it
Sorted HDPE? Isn't that an oxymoron?
pyrolysis -- a well-known but relatively useless process
Gosh, better alert the 25 P2O competitors out there!!
The mix of liquid to gas can be varied simply by changing the temperature at which the reaction occurs.
Nuh uh.
(the whole log-burning analogy... brought tears to my eyes it was so funny)
JBII is a carbon copy of USSE/SSTP
The best argument most people have about JBI's P2O tech being a scam is that it fits the mold of another penny-stock scam. But do you call that research?
without ever giving any evidence whatsoever that his oil is sellable and commercially viable
You believe that anyone will have trouble selling diesel fuel and/or gas on the market? Because crude oil is just so much more convient, right? LOL
...Mr. Bordynuik being excruciatingly honest--which you can see he's not.
Funny, the 400+ people at the shareholder meeting didn't appear to think so -- it's only the armchair investment experts on iHub that claim this. Do you think there is a reason why among the 2000+ posts claiming JBI is a fraud, not a single one of them was written by a person who attended the AGM?
I hope the poor souls who are discovering JBI lately and stumble across this forum don't fall for the second-rate "I can spot a scam" posts. It's actually more like "I can spot a short"
Perhaps your definition of "mixed" is simply different from what it implied with Plastic2Oil?
As I understand it, "mixed" for JBI's process normally includes: LDPE, HDPE, PP, PE and PS. These are also the polymers typically accepted by most competitors, and listed on their websites (Envion, NillTech, Cynar, NTIC, etc.)
You are right that PVC and PET are special -- these must be pre-processed because of the HCL and hydrogen that can be produced, and it's my understanding they once pre-processed they can be mixed with the others in the reactor.
While it was not made clear which of these feedstocks (or combination thereof) was used during the test-runs, the independant lab IsleChem has indeed verified the output of much more than 75% hydrocarbons.
My "unbiased opinion" is useless to the investment community as I'm not a specialist. IsleChem has many chemists, which is why they were retained by JBI to do this analysis.
I trust a publicly disclosed and endorsed report from IsleChem much more than the wikipedia research any punter hiding behind an alias can do on the Internet.
Paper, this is big news. If plastics are not just long hydrocarbon chains, then this is all just a big lie.
Please will you contact the other several-dozen companies, many of which have been doing plastic to oil for over a decade, and tell them their chemistry is "a blatant lie"? I'm sure they will be glad to hear it.
We should inform all their shareholders too.
Thanks for catching this!!
/end sarcasm
And for those of you who feel that JBI is slow to rollout their P2O technology, consider this about Envion:
"After 15 years in development, the EOG is now ready for deployment"
(taken from http://www.gizmag.com/envion-plastic-waste-to-oil-generator/12902/ )
Stu
Envion's plant cost $5m according to this article, which is an order of magnitude higher than a full Plastic2Oil(TM) site.
http://www.inhabitat.com/2009/09/16/new-envion-facility-turns-plastic-waste-into-10barrel-fuel/
Also, to take the comparison further, it says: "each ton of waste will produce 3 to 5 barrels of product" versus Plastic2Oil's 6.3 barrels.
Stu
The hydrocarbons put in come out roughly as:
90% fuel (of which 85% diesel, 15% gasoline range (the missing bit you asked about?))
9% gas (natural gas range)
1% residue
Of course if you put in paper, wood, metal, etc... it will come out too as solid residue, so the numbers above refer ONLY to the hydrocarbon mass input.
Also, it is not publicly known if these numbers are constant over all types of plastics, although since the catalyst's added value is in cracking hydrocarbon chains at a specific length (diesel), I don't imagine it would vary more than 2-3% from polymer to polymer.
Stu
Kaleid, welcome.
Yes, plastic to oil processes are in development, rollout AND production by many other companies, though it's not at all very widespread today.
See my post here for a list of many of them:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50019367
Be careful what you read on this board when doing your research, as many here will claim JBI's Plastic2Oil is a fraud and that JBI is scamming people out of their money. These claims are baseless and made by people who have never met the founder or any of the management team or board members, nor done any qualitative or quantitative comparisons with the competition. Plastic2Oil(TM) will revolutionize pyrolysis and put JBI on the map, but this is a very young company and they still have much to prove.
Good luck to you.
Stu
It's quite rare that a company will release the financial details of individual contracts, so you should not expect this to be PR'd.
If you want to know how much the application fee is (or if there even is one), you can apply. The email and phone number are on the website.
Of course, chances are if you do apply (and qualify as a JV applicant), you will probably be required to sign an NDA, and then you won't be able to disclose the terms in public anyway.
That's pretty standard practice.
Stu
P.S. Awesome timeline.. amazing to see how much progress such a small company has made in 12 months.
BPA Study Suggests Possible Cancer Risk
http://www.newsinferno.com/archives/20723
I didn't read the deleted message, and I'm not a moderator, but I have kept every share I ever bought in JBI from as low as $1.01 and as high as $5.75. Technically, I'm taking a haircut at today's price, but since hair grows back I'm not worried at all.
My point exactly. Pretty strange for JBI then.
I will find it hard to believe it will climb back to where it was without some real results.
No argument from me there. I don't believe it had any business being at $7 before now anyway, but long-term I believe it will be significantly higher that that!
Only time will tell.
Stu