Plastic2Oil Inc (PTOI)

[scion]

Hotstocked's research report.

http://www.hotstocked.com/pdf/JBII-92951-report.pdf

Unattractive: Risk Factors greatly outweigh any
merits we have found while conducting our research on this company. We expect this stock to decline and our recommendation to investors is to sell any position that they have in this security.

Technical Analysis Component: Unattractive
Technical analysis is the study and analysis of trading patterns generated by market activity. While Technical Analysis can be useful at making short term predictions, it ignores fundamental factors that may impact an entities value long term. JBII stock is illiquid. A small amount of buying or selling can impact the price. Stocks that are this inactive are often the subject of market manipulation strategies.
JBII share prices have a neutral trend of sideways activity. JBII stock has just formed a short term pattern suggesting a modest short term rise in price.

Valuation Analysis: Strong Sell
Valuation Analysis is a simple comparison of what the current market prices would represent to an acquirer of the company in relation to numerical aspects of their business. This is useful at determining whether or not the stock is a good value. However stocks that are a good value often have negative operational trends and good value on its own is not a convincing argument that a stock should be bought. Conversely stocks that are overvalued often have positive operational trends.

JBII shares are currently priced at an extremely exhorbitant premium in relation to the actual sales they do. There is a substantial amount of hype and positive expectations already built into this share price. JBII market value is clearly not based on their tangible assets as it is considerably higher than the value of their assets minus liabilities. They are a small company competing with larger competitors with greater resources. Their ability to grow over the long term will be limited unless this situation is corrected.

Operational Analysis: Sell
This is an analysis of their business activities over the last 12 months and how this can impact the company and it's share price over the next year They are not growing sales fast enough to attract any attention from investors based on growth. Earnings are declining and the company has had some losing money quarters. This company has low or declining profit margins. This makes their entire business unattractive to us.