Plastic2Oil Inc (PTOI)

[the big guy]

I think my wording is fine. I just tried to look up how much they have spent on the blending plant and how much they bought it for. I was looking for red flags. I only found a Yellow Caution signal and a bunch of construction boots. I wonder what that means? who knows...

no seriously they spent $24k on fixing up the blending plant and I don't know how much they paid for it.

My concerns if I were an investor would be:

- that it was not an "arms-length" transaction. I just bought my friend's Honda Civic for $250 and it is still solid. That was not an arms-length transaction. He did me a huge favor. I don't know what JBI paid for it, but maybe the owners wanted to sell it and got a good price...
- that the money spent on the blending plant was much-needed cash that may prove vital to their survival. From the last 10Q, the Run Rate is 1M/quarter. They had 2M cash in the bank in June. And they won't start producing until next year? If he spent money he did not have on that blending plan and can't get P2O up and running, investors are hosed (that is a Canadian term). And JB is a "hoser". Again.
- that the money spent on refurbishing the plant was a waste. Then again, it is only 24k according to financials.... I thought maybe that would represent a whole bunch of maintenance done that could be used to inflate financials for a few years (not spending on maintenance).

By the way, when I worked at that industrial gases company I noticed that all of our facilities were really rusty. I actually asked why they were not painted... truth was.. no one cared. But we made sure that the equipment was in good order... the fact that that plant is all nice and shiny means.... squat.