Plastic2Oil Inc (PTOI)

[tykundegex]

I fully agree with tib's line of questioning here. I was actually surprised to hear JBI's number on the amount of plastic waste that goes into landfill in the US.

It is dramatically less in Europe, and in Switzerland up to 90% of consumer plastics are captured in recycling programs. That means there IS clearly value to waste plastic -- the question is will P2O make it MORE valuable? Yes, it will -- but it doesn't mean P2O could capture the European market hands-down, as you cannot simply displace an entire supply-chain.

So far, JBI has only discussed P2O sites (immobile ones) in the US, and the 2500 number seemed to imply within the USA, though I suppose it will include Latin America too (Javaco sites, for e.g.). And with the P2O ships, they can go to countries where there's no value for plastic at all -- this is a great way to ensure that for the next several years at least, the market for waste plastic will not change much.

And then JB stated on Facebook that he would consider selling the P2O business, ideally when it "peaks" .. which implies he's well aware that this is not a long-term growth model (but a massive short-term one).

Now that I am a shareholder and have "bought in" to JBI's business model, I'm faced with the question of "what could happen that screws it all up?". Next to P2O simply not working or not being permitted to run in some states (not very likely), plastic supply is clearly the biggest threat to P2O. That, and oil prices dropping. So asking the question about what other markets for waste plastic are there, is a very sound one, asked by a very diligent shareholder.

I look forward to the US-centric answers.

Stu