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No sir. Savvy investors know how to spot an incredible company when they see it BEFORE revenue surges, run by an CEO with a reputation and a fabulous track-record.
All new investors who get into JBII after p2o validation is published, are the run-of-the-mill type of investor.
You snooze, you lose.
S.
I'm a gambling man.. picked up some DYER yesterday just above the ask. Now I guess it's a game of patience.....
S.
Having started companies before, raising money through private equity or VC is not the most attractive way to go if you ask me. You can imagine the equity a VC would want in JBI before P2O rollout is underway -- there is no way he'd be able to raise enough and still keep control IMO.
Buying a worthless public shell, acquiring other companies with strategic fit using some cash and mostly stock (and the future value the acquired company clearly saw in that stock), and "letting the little guy in" as it was quoted on Facebook, is not all that much more work in my opinion, and ..well.. rather noble to boot!!
I also did some reading on PIPEs, and there are many reasons given why these are so popular lately -- feel free to read-up on it and you'll soon realize why JB chose this way to go.
Stu
And remember.. based on JBI's own estimates (with oil at $70/barrel) each P2O site is going to net them $2m.
That means that today's price is justified with a handful P2O sites live. There are 45 earmarked in Florida, at least a dozen (unofficial number) or so in NY that will be JBI-owned, and Geoff Weber (P2O rollout guy) is flooded with applications from people wanting to do a P2O JV since they are sitting-on, or have access to, large volumes of waste unrecycled(able) plastic!
The instant the third-party validation is confirmed, any other worries you may still have will quickly become insignificant in terms of deciding whether this is a good stock or not.
Stu
Very good question (really, no jibe here). Personally I will give it 2 quarters to see P2O revenue growth. If the growth quarter-on-quarter is in-line with expectations (i.e the number of processors coming on-line and/or the price of oil), then it's an awesome long-term hold!!
But the stock will certainly surge in a big way when the first revenues are shown (possibly even when the "validation" is done) as it's then that people will start to realize the potential from JBI's P2O. I would expect a forward P/E of up to 100 in the early years, which .. well... you do the math!
Stu
JB mentioned something about having to do a PR before a conf call if there is anything "material" to report, so... it actually gives us only 10 days!
S.
Brilliant summary Wess.
There is simply no way JB is a fraud given his track record and the quality of his professional network.
All signs clearly lead to JBI's P2O process being a game-changing technology, and a new chapter will simply be added to the UNEP research paper jjsmith posted. I'll call the author myself!
And it would appear that institutional funds, thousands of long investors, entrepreneurs, acquired company's management teams, stock exchange directors, and global engineering firms agree and have taken their own steps to be a part of it!
Third-party validation is imminent, and it will be followed by P2O revenue recorded in SEC-filed financial statements.
Time is running out to get this stock on the cheap.
See you guys on the major exchange at $20+ in the summer!
Stu
They're all profitable: JB Inc, Pak-It, and Javaco
PRO: THREE independent, diverse, and profitable businesses
If one slumps, it shouldn't affect the others.
S.
PRO: unparalleled transparency and communications from the CEO
(sorry, I'll group these from now on)
S.
PRO: debt-free!!
soon to be a PRO: diverse, qualified, and independent board of directors with shareholder-value as top priority
S.
PRO: largest engineering archive on the planet
CON: still trading on the OTC
(and like the other 2 cons, this problem is temporary)
Ha! My "gut feeling" about JBI stock is WAY more optimistic than the facts!! So Zardiw, you can put that down as a PRO then.. "good gut feeling"
Stu
PRO: has been issued multiple patents: water soluble packets (already licensed) and dirty bomb detector (looking for licencees)
S.
Nope, I believe it was you who missed the point JJ. In order to be an attractive acquisition, a company need not have 5x growth potential with its existing business lines.
Together with the synergies, cost-savings, and strategic P2O advantage they bring, there's plenty of value in this acquisition.
Stu
Easy there Z... maybe JJ just forgot to read all the news articles about JBI's NASA work that we've directed him to.
JJ, have you not been doing your bedtime reading?
S.
Javaco is profitable, and was acquired without dilution to JBI shareholders! Not only does add to the bottom line, but it will faciliate P2O rollout in latin America which is a huge potential market for P2O.
Sounds pretty smart to me.
Keep 'em coming JJ.
It's sad that JJ's silly questions are taking up JB's precious time.
But quite amazing too really. JJ are you learning something about the CEO here?
S.
Bang! Nice digging Ron.
Shall we roll that up and light it for you JJ?
S.
I miss the weeeeeeeeeeeeeeeeeee's from December.
But I'm patient
Soon enough, JJ and monkey will be reading a bunch of grown men and women's posts full of "weeeeeees" !
S.
I'm willing to bet that the credits were sold for cash + JBI stock because the seller was reasonably confident that the stock would be worth far more someday.
Anyway, if I found a coupon for a burger worth $1.99 on the floor, and sold it to you for $1 because.... let's say.. I'm a vegetarian, we'd both be winning, right? You get $1.99 worth of burger, and I get money for something I couldn't use.
I think the CEO is smart enough to figure out if the media credits are worth at least what he "paid" for them.
S.
JJ, have we answered all your outstanding questions yet? If not, line 'em up. I'm in a good mood and will answer all that I can.. and while smiling too.
S.
JJ, you should view the November shareholder's presentation -- the part about plastic recycling. Almost 80% of what's picked-up at the curb for "recycling" is either not recycled or not recyclable (due to mixed-plastics). Only a fraction really gets made back into pellets for molding all over again or down-cycled into other products.
This information is backed-up by EPA stats.
As for creating value in the waste -- sure.. this is a fact that JBI outlined in their latest 8K. But with oil at $75 / barrel or more, there's plenty or margin for paying for feedstock.
S.
no, wait.. that can't be the... ya think?
Those cheeky monkeys over at JBI maybe found somebody to accept their credits?
Let's see what today brings.
S.
Do you think that radio, television and print advertising is organized by each individual station, journal and paper?
Being in the 21st century, I would imagine there is a slightly more integrated approach where I can buy airtime on a variety of channels/stations during varying hours of the day, without negotiating the terms and price with each publisher and broadcaster. I believe that's what media agencies do.
I'm rather certain JBI knows "who would redeem it". The fact that you don't seems to irk you. I'm quite content not knowing myself. But I guess when the ads hit the airways and printing presses, your questions will be answered. Think you can wait several more weeks?
S.
I would imagine the "value" of the media credits has something to do with the cost to purchase them and/or their redemption value.
If you have a coupon for a free burger, and the burger costs $1.99 normally, wouldn't it be fair to value the coupon at $1.99?
That means that when JBI spends them with whatever agency or media network they're valid for, they'll be avoiding a cost equal to $10m.
Seems kinda logical to me.
S.
Agreed, the mods and major contributors to this board make it one of the highest quality boards on iHub IMO. Superb DD! Thanks to all!
Judgement days is nigh..
S.
P.S. I haven't owned a tele since I had a US-made mint green one, that I sold 15 years ago (i was a starving student)! THJMW can change all of that!
Anyone know a twitterer to follow for today's/tomorrow's court proceedings? OJ's trial was televised... but no such luck for WaMu.
Thx,
S.
I'm gonna go for a Fender Telecaster anniversary edition myself, but I'm holding on for news first. Been in since $4.20, picked up more at $30, but.. I think I enjoy the thrill of holding for FV, more than the gain at today's price.
My Telecaster lies in the hands of the courts !!
Go WaMu!
Stu
MX, I am rather sympathetic to your advice here, though sometimes it's hard to sort the curious and skeptical from those who seek to cast doubt.
Offering others our DD would allow people to profit from the coming rise is PPS. I often wonder why JB has done it all this way -- why buying a shelf-company on the OTC before P2O is "public", instead of going the private equity route?
As a poster on Facebook said: "Usually companies stay private, and then IPO years into the operation, only to make the fat cats rich. Incredible work. The masses will see what we see soon. Thanks for letting the little guy in."
I have to agree here... my own DD helped a little, but this board helped me a lot in the early days. I got lucky.. I found out about JBI in the $1 range (thanks Z!)
I believe we should let in as many people as possible, and with so much posting history on this board it's hard to find all the answers when you're new. iBox and sticky posts, mind you, are a very very good place to start.
Let's try to "let the little guy in" !!
Stu
Remember that this machine is currently the only one being used for validation. That means it's likely being built and dismantled over and over again in order to verify and document the process.
The objective of this is to ensure a foolproof procedure exists for building it, and also validate the safety and inputs/outputs of the processors, so that it may obtain any necessary city/state/federal certification required to operate.
Kinda reminds me of a guy called Henry. Ford was his last name I think... and he didn't ask people to drive around in his Model-T's to prove they worked before he was able to mass-produce them in a factory.
They sold like hotcakes I believe!
But I'm sure Henry was quite certain the car would work just fine before he mass-produced them and made his fortune.
I agree -- there is also a report just out on Washington Mutual (yes, the bankrupt bank), that smacks of pure math and trend analysis. I wonder if a human reviews these things or not.
This board needs to chill out though. Just because somebody points out that an "outperform" rating appears to be based purely on technicals, doesn't mean they are short on the stock.
I personally hold BOTH JBII and WAMPQ, and did LONG before any report came out classifying them as "outperform". But I also believe these reports don't hold any water nor add any credibility to JBI believers! They don't AT ALL look into the business of JBI, and there is no comment in the reports that makes it look like the business strategy has been reviewed by a human being.
If people who are long on JBI start bragging about the Reuters reports as "proof" that this is a stellar investment, then they will only attract more criticism.
Stick to fundamentals (not technicals), and there is PLENTY of proof JBI is even underrated as a mere "outperform".
Stu
Seriously, when the PR guys maintains a blog about the company, you can be sure they're keen on being open and up-to-date with their information flow!
Most of the excellent information and DD on this board comes from iHubbers having simply called or emailed IR or John himself. That shows that if you have a question, the best place to go is the source, and they'll give it to you straight!
S.
Yes, AMEX requirement is $2 for 20 trading days. Taking into account that reverse-splits sometimes cause the price to drop briefly, a 40:1 split gives them quite some room. But given the potential I think their valuation is very reasonable today and don't expect it to drop much or for long.
As for PPS projections: they said break-even is expected by mid 2010 I think (?), so we'd have to do some math to project forward from today's deficit and see where that may take them for by YE2010, but I'd guess something like 2-3x today's price (split-adjusted of course)? Just an opinion...
S.
They'd have to put it to a vote, and then do the paperwork, so I'd guess it won't happen before March. Then (and only then) will they be able to qualify for uplisting (20 days above $2 for AMEX), which would therefore be around mid-May, in my opinion.
Conventional logic would say get in before the split.. I'm not in CERP yet and wondering when to make my move.
S.
Last 10-Q (mid November) has a boiler-plate "on-going concern" statement about funding (i.e. that they will go bankrupt if they cannot secure further funding).
But I thought I saw something (since then) about a private placement that gave them several more months. Does anyone have any info on this? I cannot find it anymore (or I am confusing it with another company).
I still haven't taken a position in CERP but I'm seriously considering it given the efforts to re-structure, outsourcing of manufacturing, and new contracts that should bear fruit in Q1.
Any advice or DD would be welcome!
Thanks in advance,
Stu
Medical waste - info from the November slide-show:
. $85m is the annual cost to dispose of it in the USA
. 37 states have mandated a 50% reduction in this waste going to landfill (unrealized as of yet)
Seems like a limitless supply of plastic for JBI!!! And at negative-cost too.
S.