Pick your biggest OTCBB or Pinky Scam of the Century

[SteveF]

I'm not sure how some of these people can live with themselves ripping off others like that.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50756621

Posted by: PaperProphet Member Level Date: Monday, May 31, 2010 4:37:00 PM
In reply to: None Post # of 46097

I see some of the old USSE/SSTP promotion crew is now over here. I'm not sure how some of these people can live with themselves ripping off others like that.

It took me about thirty minutes of research to find that JBII isn't legitimate and that Mr. Bordynuik is a swindler. Here's the bottom line--if JBII/Mr. Bordynuik starts with mixed plastic then he is not going to end up with 98% hydrocarbons like he says (90% diesel/gas, 8% natural gas). Do a little research and you'll see that mixed plastic is predominantly PET and films which are over 1/3 elemental oxygen. If you start with that, no catalyst in the world will change that oxygen to carbon. The end product will contain at least 25% oxygen.

On the other hand, Mr. Bordynuik could start with something like HDPE which is entirely carbon and hydrogen and skip the prohibitive and extremely expensive process of trying to separate out the oxgenated components--the problem which plagues this type of process, but then he would have to start with HDPE. Sorted HDPE is more expensive than the oil used to make it. Cracking or HDPE is a value subraction.

What Mr. Bordynuik is using is simply a process called “pyrolysis”--a well-known but relatively useless process. A material is heated while restricting oxygen until it breaks down into mostly liquid and gasses. Pyrolysis was used to produce the gas for street lamps in the 1800's and used in Germany during WWII when gasoline was in very short supply. Any carbon-based or even organic material can be pyrolyzed until the solid breaks down into mostly liquid and gas. The mix of liquid to gas can be varied simply by changing the temperature at which the reaction occurs. If you see a log burning in a fireplace, the reason you see the flame shoot up above it is because pyrolysis is turning the wood into a gas and it is rising up before burning. When there is nothing but solids left (in wood, about 30%) then you see embers burning.

Pyrolysis is nothing new in scam stocks and JBII is a carbon copy of USSE/SSTP which had Mr. John Rivera running the scam, all the way down to the “secret” catalyst and demonstrations of the reactor. Mr. Rivera of USSE/SSTP also promised 200 reactors the first year and thousands after that. It was supposed to solve the United States' dependence on foreign oil. As I heard someone once say, if you tell a big enough lie then people will believe you.

Mr. Rivera started his pyrolysis in the 90's with used tires saying he could produce a quality oil that could be used for anything from fuel to crude oil. He reinvented himself in 2006 saying he could turn soybeans into fuel--until it was pointed out on message boards that soybeans cost more than crude oil then he quickly changed to spoiled soybeans—-until again it was pointed out that spoiled soybeans are in short supply and any farmer who produces spoiled soybeans either learns from his mistake or goes out of business. Finally Mr. Rivera turned to DDG plastic waste automobile fluff, using pyrolysis to turn that plastic into a “high-quality” oil just like JBII says they can do. “High-quality” being a highly subjective word. Many people would certainly debate that term if the oil can't be sold for even what it costs to produce it. I understand that Mr. Bordynuik 'says' he can sell it for crude oil but he isn't doing it for a reason that's extremely obvious to me.

Mr. Rivera even had a lab he paid to do testing called AmSpec (the role IsleChem plays for JBII). Over and over on the USSE/SSTP message boards if anybody questioned the usefulness of Mr. Rivera's pyrolysis oil, promoters would just say, “AmSpec” as if that was the end of the story. AmSpec gave good-sounding but useless information just like Islechem is doing for JBII. AmSpec was certianly pivotal in helping Mr. Rivera swindle the public. Currently Mr. Rivera is in the middle of an SEC suit against him for fraud. USSE/SSTP are so similar to JBII that I suspect Mr. Bordynuik must have watched and taken notes.

You should understand that Mr. Bordynuik is obviously lying about the composition of the end products from unsorted plastic. When you see someone make that kind of a lie, it probably means that is just the very tip of the iceberg. All the other problems you see are just symptoms. If you start to see delays, as it seems are being 'reported' now, then you should spend some time thinking. Ask yourself if shareholders are just having bad luck over and over and over and over again or if there is something behind that. Don't worry about Mr. Bordynuik, he is getting compensated well for his 'effort.'

These scams never cease to surprise me with new twists to their stories, The bottom line is that they always find their way closer and closer to a stock price of zero before the shell is sold to another swindler. Unfortunately minority shareholders never even see any benefit from even the sale of the shell. The controlling shareholder, in this case Mr. Bordynuik, gets that for selling his majority stake to the up-and-coming new swindler.

At the high, JBII's market cap reached close to that of USSE/SSTP's high market caps. About $500 million. By comparison, the Toys R Us IPO is supposed to be for $800 million. JBII made it to over half that without ever giving any evidence whatsoever that his oil is sellable and commercially viable. That market cap is an effect of a large number of shares but maybe only a few hundred thousand shares in the effective float to start. A few people buy it because they are naïve about market valuation and that gives the impression that the company is worth half a billion dollars. In reality, the market cap is completely divorced from any type of real valuation. The bread and butter of these swindlers are shareholders who average down at the ever cheaper prices while convincing others to average down as well. The swindlers can create new shares out of thin air and sell them perpetually. It's good for shareholders to figure out what is going on here.

It's your money. The smarter you are with your money, the better off you will be. Don't take 'fibs' from Mr. Bordynuik lightly. If you drank the Kool-Aid and really believe then remember that your 'valuation' depends on Mr. Bordynuik being excrucuatingly honest--which you can see he's not.