Plastic2Oil Inc (PTOI)

[jimmenknee]

Appreciate the response Paula

I don't know what you mean by AGM

The Annual General Meeting was held April 24th. Shortly after that the 2nd Private Placement occurred. You can track/correlate the fundamental dynamics to the overall price trend. Hard to argue "tax sell off" from a wider perspective.

and couldn't find much information on Pak-it.

Pak-it was 1 of 2 acquisitions executed the 2nd half of 2009. A "group" of Pak-it members received a substantial amount of shares both through the acquiring and from debt pay-off. The "marriage" became shaky shortly after the AGM and we recently learned the deal for Florida P2O franchise(s) which were to be headed by former Pak-it members was cancelled. I surmise some of the more recent selling pressure are by those who no longer have "skin" in the game-- and depending on how the .80/share value is handled -- could even lend some credence to the overall latest use of a "tax sell" phenomena.

Your weekly chart shows relatively stable A/D until the beginning of December.

Depends on agreement of the use of "stable." A/D is volume given to the relationship of the closing price during the sample period with more weight to the "top end" of the price. With both "crack runs" and "painting the tape" being pretty common in the OTC it is hard to rely on in isolation (and OBV is totally unreliable). The surge of volume that moves a thinly traded stock becomes harder to show "settling" given the down volume tends to only slowly chip away at it. I think a fairer calculation of A/D is given thru CMF with the "momentum" better trended by ChiOsc. Regardless, A/D depicts "retail sentiment" in the stock given the area of concentration.

The money flow shows the flip flop of a stock that is being worked, not distribution.

I assume you mean the "raw" Money Flow calculation as opposed to stockchart's MFI. I like raw Money Flow on the intraday chart as it does as you say "flip flop." It is calculating the "average" so movements of the "bulk" of pressure can be interpreted here. I like to call this the "heavies" area or "trench war." I believe this area is the most critical to understand and consider for entries and exits. MFI daily shows short-cycle health and long-cycle quiet loading since beginning of November. The December phenomena would appear to suggest tax-selling if one did not take in to account the highly anticipated "pop and drop" event provided by the Air Permit "status" on 12/15 and subsequent "events" up to/including the "Shareholder Conference Call" on 12/22.

If there is any increase in float, I believe it is most likely from the people that are working the stock.

Not sure if I understand your depiction of the dynamic-- I am exactly saying the Float increase via restricted shares coming off restriction. There are literally millions of shares at different price levels below a dollar that are trickling into the float since this Summer. Even "investors" are assumed to be selling partial positions to recoup their initial investment.

Your A/D line shows a bullish divergence between it and the stock price. That says to me that it is generally being held and not traded in spite of the price fluctuation. I see a stock that has been pushed down all year but no sign of major bailing by anyone big, or hordes of little people either.

Bullish Divergence (most recent) = quiet loading
Major bailing? No-- agreed. Hordes of little people or in other words death by a thousand paper cuts? Yes-- can clearly see that on an Intraday chart-- I call it dribble dumping. Most here-- even the staunch advocates -- admit to "sellers."

The technology seems to be proven at this point. Since I believe this is a business coming into maturity, I chose the retrace after good news as an entry point.

Fair enough-- the only problem I have at this exact point in time is financing. They are out of cash by all accounts based on the latest Q.

Charts have to be looked at in multiple time frames. The intraday chart shows no dumping since the recent spike on the news.

Money flow has been good for a couple of days now and A/D has held up well. There is another bullish divergence on the intraday between A/D and price. That is what makes me think that there is limited down side from here and very strong upward potential.

"Dumping" is clearly shown from the run-up. Again given the "weight" of the initial volume surge it is "masked" by the "thousand cuts" phenomena on most intraday period sampling (all but the 5 Min Chart). Look at Volume Accumulation (a fairer OBV-based calculation) regardless of sampling period to see the "dumps." (You'll have to be more exact in your sampling period and timeframe for me to see Bullish A/D Divergence.)



60-Min


5-Min

I think that it is quite likely that the next news takes the stock back to at least .80 or higher. Each time this stock spikes it will be harder to bring down because of the core investors.

Don't disagree with the first part-- all eagerly anticipated events have produced a pop. I disagree with the 2nd part given the known level of 2x the 1st PP holders buyin price = $1.60