"Once two additional processors are brought on line, JBI will have sufficient production capacity to become, as the CEO put it, -cash flow positive."--Steady-T
I can't find it right now, but I thought there was a stipulation with this notion of being cash flow positive, namely, that it was only in regards to day to day opterations. They're going to need a ton of cash to build enough processors to reach the 20,000 barrel a day output that JB is aiming for. They're also going to have to train and pay quite a few new employees. So, clearly, just getting 3 processors up and running in Niagara Falls is not going to take care of all this.
Put differently, isn't it true that the company as a whole, that is, not just day to day expenses, will remain in the red for quite some time as they build out their "empire"? Please correct me if I've misunderstood the goal of those three processors up in Niagara Falls.
My concern is that if what I said above is correct, then people are apt to feel let down and blame JB for over promising if the goal of being cash flow positve is limited to day to day exepenses but people are assuming it means that they'll be able to look at the quarterly reports and see the earnings outpacing all the company's expenses.
I do believe they one day will get there. But to become truly cash flow positive is, I would think, going to take a lot longer to achieve than just covering day to day operations. Is this how you are seeing it as well?
Steve
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