Plastic2Oil Inc (PTOI)

[tykundegex]

Thoughts about yesterday's Facebook post

JB's Facebook post from yesterday is very interesting. He's implying that in the 3 urban areas where they will be setting up 25 JVs, they already have the two most important success factors lined-up.

JBI seems to have (or will have) agreements in-place to ensure a supply of plastic (enough for several P2O processors per city!!), quality controls in-place to verify and guarantee the output fuel grade (ASTM testing), and obviously will therefore have agreements in place with nearby refineries they'll sell it to.

A couple of weeks ago I pointed out that securing feedstock is THE critical factor as most plastic (that enters the recycling chain) is already accounted for. So they appear to have that issue taken care of!

The JV or franchise approach ensures that JBI doesn't have to hire anybody directly to operate the processors thus low up-front and overhead costs.

And the high-quality output and perhaps bulk supply agreement means they can demand a premium price for the oil output.

This explains why they've chosen 3 distinct sites to "test" the P2O JVs -- as they have the necessary relationships & agreements there to ENSURE its success in these regions.

This bodes extremely well for shareholders folks.


S.