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Re: Steady_T post# 159603

Monday, 01/23/2012 8:28:49 PM

Monday, January 23, 2012 8:28:49 PM

Post# of 312015
I don't want to go on about this, but your post does not make sense. If Somerset was desperate to buy feedstock, they would offer as much money as possible. They would highball, not lowball. I don't know how much refined fuel sells for from a refinery, but let's say they make $10/barrel. They do 5500 barrels/day. That is $55000/day. They had anywhere from 50-100 employees. 100 employees at $100/hour is $10000. Other costs may double that, leaving an operating margin of $30k/day.

Not bad. Realistic.

Now Marathon say can pick and choose their suppliers and demand a much lower price.

That is what I meant.

The price that JBI fetched, and I do believe from the P2O plant, is great. At this point I am not confident in their economics or if they can maintain steady production. But I agree it is a good price. It would have potential.


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