Plastic2Oil Inc (PTOI)

[Estimated_Prophet]

Why TRTN could see double digits.

I invite others to criticize, poke holes, and point out any stupidity shown in this post. I would like this to be a work in progress, until it is refined to best reflect the potential TRTN presents an investor.

Keep in mind that many variables could easily change when reading this. Raw material availability, margins,chemical costs, machine costs, labor, PE ratio, price of diesel, etc. I have tried to stay conservative with these numbers.

We have been told from IR that they are focusing on three states, and that they believe they can sell 25 franchises in these three states. Let's see what that could mean for the share price if John and his staff are able to achieve this goal.

Each machine can process 15 metric tons of plastic per batch.

Each batch will produce 15,000 liters of diesel, or 3,497 gallons.

$1.70/gallon(price refineries pay)=$6,710 per batch.

Each batch takes 2 hours. Run 4 batches a day.

Each franchise will run 2 machines=$53,680 of diesel/day

180 working days a year=$9,662,400 per franchise.

25 franchises=$241,560,000 of gross revenue.

Now, this may be too difficult to achieve. Maintenance times, raw material availability, unforeseen problems, etc. So, lets just take 2/3 of that number, which equals $159,429,600. Then, lets take 70% for profits and we get $111,600,720. Last, TRTN's take with the franchise fee of %50, gives $55,800,360 in profits.

58,725,106 shares outstanding

Annual EPS=$0.95 pretax

PE of 20=$19.00


Notes and Questions:

This does not factor in company owned P20 machines, or Pakit, or the tape business.

What is a safe number to use after taxes on the EPS?

Look forward to any feedback to refine the numbers.