Plastic2Oil Inc (PTOI)

[jimmenknee]

You are 100% incorrect in your conclusion, but correct in focusing in on CANT as the Market Maker that sold the bulk of restricted shares into the float before the paperwork to remove the legends ran its course.

I will once again prove the Daily Short Volume file as being unreliable and not indicative of "abusive shorting" as well as prove the new conspiracy that CANT is also in cahoots with NITE to destroy the company via massive Naked Short Selling (NSS) is not supported by the data related to shorting (both directly and indirectly).

The bulk of the shares that caused the problem most likely came from the 12/8/2011 issuance of 550,000 shares to various parties as compensation for services provided and/or another large suspicious share issuance on 11/9/2011 of 500,000 shares to various parties as a finders’ fee related to the confidential private placements consummated in 2011.

On 6/12/12 the Reg SHO flag was tripped for "excessive fails," which backs up the clock for trades beginning on 6/7/12. 6/7/12 is one day shy of the 6 month restriction period for shares issued on 12/8/2011.

On 6/7/12 the minimum number of eventual FTDs was 175,233 as that is the difference between 6/11/12 FTDs and 6/12/12 FTDs.

However, the 6/7/12 Daily Short Volume file only reported 95,782 "short" shares. It is impossible for 95+ thousand short shares to turn into 175+ thousand fails.

Now let's turn the attention to trying to find out if the FTDs are Naked Shorts or Restricted Longs.

On 5/31/12 the reported short interest was 89,666 and on 6/15/12 the reported short interest was 69,667. To the contrary on 5/31/12 the reported FTDs were 25,270 and on 6/14/12 the reported FTDs were 501,571. It is impossible for the short interest to decline nearly 20 thousand while the supposed naked shorts as FTDs increase over 475 thousand.

The most likely scenario which is supported by the data:

--Restricted shares are sold into the float prior to having their legends removed.

--From at least 6/6/12 - 6/13/12 the Float remained at 46,099,023. This covers the period where FTDs eventually broke the reporting threshold in Reg SHO.

--By 6/27/12 the float increased by 1,272,664 shares, which is 2 days into the reported FTDs at a level below the Reg SHO Threshold.

The only thing left to do is to prove the back end NSS "cover" could not physically happen. This will come to light when the 2nd half of June, 2012 FTDs as well as the Short Interest gets reported. Restricted shares getting sold early only cross the tape once upon delivery, whereas NSS shares cross twice upon cover. I believe the volume over the specific "covering" timeframe will most likely show to be less than the day to day reduction in FTDs (which will follow the past "pattern").

http://www.sec.gov/foia/docs/failsdata-archive.htm
http://regsho.finra.org/FORFshvol20110607.txt
http://www.otcmarkets.com/stock/JBII/short-sales
http://www.siliconinvestor.com/readmsg.aspx?msgid=28232155
http://www.sec.gov/Archives/edgar/data/1381105/000121390012001206/f10k2011_jbi.htm