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But then he said himself "anything that is left over for prefs ... is eroding with every day delay".
Hmmm....
From what I understood about the non-algae bioresins CERP makes, they also don't compete with foodstock as they use a by-product of crops like corn & cereal. But it appears algae is indeed a better option.
You absolutely can.
Most industrial permits are issued for a specific purpose (e.g. storing flammable liquids, operate noisy equipment) at a specific location (e.g. oh, sorry.. cannot disclose this).
The permit holder can undertake the permitted activity on behalf of another entity, and it's fully legal.
S.
What we can say about it is that the public (any shareholder) was invited to take the tour. And if you couldn't make it, and are a shareholder, you can still see the facility -- just call the office and tell them you want to see it.
That's more than fair IMO.
But you may be disappointed to "see" only what has already been publicly communicated: P2O working. Now that they've published a video of it on-line too, what's the real advantage of going? The NDA didn't change a thing. As far as I've read on this board, nobody who took the tour had a change of heart based on what they saw there. They were more enthusiastic perhaps (like getting an iPhone after you have owned AAPL stock), but no new material information (to the success of P2O) was disclosed at the tour.
Bueno, are you serious? How could knowledge of the physical location of the NY facility give me an edge in predicting the share price of JBI? All "material" details about this site (permit-pending, processor installation, etc.) have been made public. What does knowing the address change?
This is not "material" information -- perhaps someone has a link to the official definition of "material"?
Stu
Beautiful it is.
And regardless of the stock price, or which exchange JBII is traded on -- the revenue that will be generated from these is a game-changer.
And given that their cost-cutting measures didn't really have their full effect this FY, we should expect about 2x the profits in 2011 assuming the same revenue! And yet the way things are going here, I'm certain they will be increasing their revenue also.
This is my second favourite investment right now. They just need some more exposure to have the PPS move.
Stu
Coris, that would be in direct violation of the Non Disclosure we all signed when we took the tour. But if you want a show of hands as to how many here saw it... you can start with counting mine.
Stu
I would certainly hope so given the string of great news Cereplast has had recently around product up-take, revenue guidance, uplisting, cost-cutting, and profitability!
The thing about a stock (company) like this is after many months being a shareholder, if you still cannot understand why the rest of the world doesn't catch on and the share price isn't 5x higher, then you only have to do one thing: WAIT.
Which iHubber has the signature with Buffet's quote about waiting for the perfect pitch before swinging? That certainly applies here!
Stu
Did anyone dial into the conf call earlier? Share price down 4% on what appeared to be great numbers!!
Something on that call that wasn't in the PR perhaps?
Thx
I don't think there were any for 2009 as they had just bought the shell and were doing all the legwork for the necessary import/export licences, etc.
For 2010, they've said $1MM in revenue: you can listen to the Feb conf call here:
http://www.chinafoodservices.com/audio/cc-2010-01-20.wav
And since then they've signed 2 contracts worth far more, so we're expecting a revised guidance soon.
S.
Summary of Golden Dragon:
I'm new to GDHI, and have only take a small position, but after listening to the 2 conf calls (Jan & Feb) with CEO Frank Yglesias, I'm encouraged by what I see.
Here is how I see things for GDHI ... please chime in if you have something to add (or correct):
Situation in January:
. they were expecting yearly revenue to be ~$1m
. they had ~300 stores in Shanghai selling their products, were targeting 1000 by year's end
. they expected to be cash-flow positive by Q3
Then in February, they announced the deal with Vanguard, which was "beyond expectations", thus annual revenue projection are expected to be revised up (though have not yet been).
Recently they announced a deal worth $20m over 5 years with a Korean entity, which clearly puts them well above previous FY2010 revenue guidance and should shorten the time to become cash-flow positive (assuming they start moving product this year).
To date, the 2 co-founders have retired 800m shares, soon to be 1b, which is more than 1/3 of all O/S.
At today's PPS of $0.0018, the market cap is ~$4.5m.
Did I get that right? Missing any salient points or red flags?
Stu
Many OTC stocks say they "intend" to uplist. Only a few make it happen.
IMO JBI will uplist shortly, and then bit-by-bit all the things that the longs (and the management team) have been saying for months will start to come true: NY permits, P2O revenue, P2O rollout, Pak-It growth, etc.
Come Q3 this will be a different company, and a very different message board.
Stu
The uplist application was filed long after Gately was named auditor. And it's nice to see an OTC company implementing the wishes of their shareholders rather than making decisions despite them. Big green flag IMO.
Notice the reasons JBI changed their auditor:
1) shareholder votes showed a lack of enthusiasm to keep the old one
2) NASDAQ (?) audit committee recommended a new one
Both are equally good reasons to change, and it would appear as though JBI is on the cusp of moving exchanges.
It's also a great day today to average-down your JBII holdings!
Stu
I just took a starter position in this company. After listening to the conf call recorded back in Feb and reading some of the board, it seems like a solid company (for a pinkie). And the Korean JV alone seems to support today's PPS. Nice long-term play IMO.
Stu
I have no idea how the selection is made, but I would imagine there is a certain amount of discretion available to the company to "select" from the applicants. In fact you are allowed a certain number (or percentage) of non-Accredited Investor US-Persons, and that number is listed as "4" in the Form D.
A PIPE is a lot of (paper) work, so I would say that the larger the chunk you wanted to buy, the better your chances of being accepted. I asked about the PIPE for SWHN a few months ago and they said the minimum investment was $100k (which is their own rule).
Stu
Accredited investor status is only required for "US Persons". Canadians and expatriate-Canadians-living-in-Switzerland are allowed to participate
I believe it was 6 for the existing Niagara Falls (NY) facility. There would be others on the fuel-blending site, and given that it's also in NY I can see a serious fast-track on the permits for that site too.
That's close to $20m in annual oil revenue just for the NF site.
Soon there will be some weeeeeeing going on here.
I have family who bought at $7.30, and they aren't even breaking a sweat!
No-brainer investment of the decade.
Yessir, indeed.
Also, given their cost-cutting measures I believe that 2011 should yield something like 3x more profit that 2010, assuming they have similar revenue.
Sweet!
That's what... 500% more than Metabolix? And CERP has a mkt cap of only 20% of MBLX?
This stock will move soon!
FWIW, I just called their IR rep Andrew Haag, and he said there is currently no PIPE open to raise money. Maybe soon, or maybe they can make it on their existing cash after all? Or maybe they just closed one. Either way, things are looking very good for Cereplast!
Awesome! So with a reasonable P/E of 25 (modest for a growth industry such as bio-plastics), CERP share price is fully supported at today's prices. That removes virtually all of the downside risk.
Only remaining issue IMO is a PIPE to give them the cash to get to Q4. Given the prospects, that shouldn't be very difficult!
Stu
Proof that it wasn't just "poof"
For all those who believed that JBI just magically stumbled upon a breakthrough pyrolysis technology without any effort, versus doing countless tests, measuring thousands of data points (temperature, humidity, pressure, chemical analysis), tuning the process and catalyst, monitoring the output, etc.... I give you a snapshot from the AGM slides.
(this one's for you Risi)
Great video for the doubters and anyone else who missed the AGM. This is JB himself explaining the birth of P2O and the evolution of their technology. Plenty of details are given. There were over 400 people in the room, and now there are millions who can view it over the Internet.
Not accumulating, buying for the first time. I've decided to try my hand at some shells just for the thrill of it.
Any other shells to recommend?
stu
In a word, yes. And JBI isn't the only one doing pyrolysis at 1 ATM -- most do. Again, please do your homework.
Temperature is between 350 and 400C, which is lower than most competitors.
S.
There is nothing under high pressure. If you'd done your DD you'd know that the entire process runs at atmospheric pressure.
I'm not suggesting safety equipment is not necessary (I wore protective glasses & a hardhat when I was close-up), but just that you're clearly not aware of how this process works despite months of posting here.
Time for a brush-up.
S.
Nice try Risicare. The process of pyrolysis is not new -- neither Ozmotech, nor Polymer Energy "designed" it. They simply took the process and made changes and called it their own. That's what JBI has done too. Only all signs point to JBI having done it far better.
Processor size: 50m2
Processor cost: $200k
Process rate: 1000kg in under 10 minutes
Process net energy input: (negative)
Process yield: 99%
Process output: 85% diesel / 15% gasoline, virtually no sulphur, water, or sedimentation
Process air exhaust: nothing but heat
Can you provide us with these numbers for the competitors please? Because if you did, and you looked at the total ROI of their process versus JBI's, you will be shocked by the difference.
And kudos to JBI for buying off-the-shelf components such as the reactor and the condensers -- why reinvent the wheel there?
Why I held (and accumulated): I cannot understand how some people on this board are crying that JBI hasn't gone fully live with their P2O technology after working on it for almost a whole year (Risicare!). And yet the incumbents are .. ahem.. live with theirs and have years and "years of experience" doing P2O.
I wonder how many of them went from concept to fully operational in under a year. My guess is none. So no P2O technology was conceived-of, tested, vetted, permitted and launched as fast as JBI.
Further to that, despite claims to the contrary here on this board, none of the competitors (Nill-Tech, NTIC, Plas2Fuel, Envion, Polymer Energy, Splainex, Donghe, Global Resource Corp., STEPS, Natural State Research, etc..) has the yeild, processing speed, fuel output quality, residue quality, required energy input, compact footprint, and low capex that JBI has. None.
When the rest of the world gets wind of this, and when P2O revenue starts, JBII will see triple digits.
Stu
My favorite part in that article:
"JBI, Inc. is currently in talks to create P20 processing facilities in Europe, Florida, New York, California, Colorado, Wisconsin, Georgia and Ohio."
Sounds like they're moving faster than Envion, Plas2Fuel, NTIC, and GBRC all combined! And this from a technology that was first lab-tested barely a year ago!
Like Bamboo and many of you here, I just cannot bring myself to sell a single share of JBII at these prices, no matter what doom is lurking in the global stock markets. Dealing with waste and producing energy is vital, even to a world in a deep recession. If oil drop below $50/barrel, then we just break those HC chains a little shorter (thanks to the catalyst, and it's something no competitor can do), produce 95% natural gas, and generate electricity from it. Over here in Europe, you can sell it to the grid for $0.16/kWh, which is already double the barrel prices for the same mass of plastic.
Stu
CAPS members over at TMF are indeed very wrong about JBII. But overall their investment advice (the stuff you have to pay for) is the most sound advice you can find, and they have a track record to prove it.
"The Motley Fool stands out as an ethical oasis in an area that is fast becoming a home to charlatans."
-- The Economist
We sure do.. otherwise I'm gonna have to call up some friends and borrow some money to buy more JBII.
An excellent time to buy more IMO. I didn't think we'd hit these levels ever again, but since I'm long and not selling, I'll happily take full advantage and buy more.
Same here on the averaging down, but I'm running dry. Just a waiting game IMO... they have so much going for them lately (except the dropping price of oil).
Unless they don't manage to find bridge funding or achieve cash-flow positive status in Q3-4, by the end of the year at the latest I think we should start to see a strong move up.
Stu
BOD members are supposed to be representing shareholders. A clinical psychologist is a great choice, since many of us are going to need some serious therapy in about 6 months -- we'll all be suffering from a rare case of "post hundredbaggerus euphoric disorder".
a.k.a. "bipolar itoldyousosis"
Apparently, though rarely, some people are known to be immune to this. It's not genetic though.. it has something to do with your stock portfolio.
EP, somebody in our P2O tour group asked John about the link between "proof" of P2O and uplisting. John replied rather categorically that there is no connection between the two -- that the exchange has criteria which are qualitative and quantitative, but that exclude the type of business or profitability of any individual business lines.
i.e. on the basis of having a viable company (with Javaco, Pak-It, and JB Inc), uplisting can happen.
One of the reasons I find JBII such a compelling BUY today is that even if P2O fails miserably, with the ramp-up of Pak-It in Canada, UK, China and going retail -- and Javaco + Data Recovery, I believe the PPS has a solid base above a couple of bucks without P2O.
Stu
Yes indeed. Remember.. all the metrics used to calculate what a site can do in 1 day are very conservative.
Truth is, excluding possible down-time and cleaning, 1 processor could do over 80 tons/day.
Just the NY facility with 6 processors installed will give JBI's share price a huge boost (with a "normal" p/e). If they blend it themselves and sell the fuel, double that number!!