Thanks to IHUB and the Admin's for bringing the JBI board back online.
Hopefully, with the new and improved JBI board we can "keep it real" going forward in a civil manner. I know that I'll be trying my best.
First, I want everyone to believe that I really want JBI to be the real deal, and solve the world's plastic problems while making millions for everyone. However, I'm having a real hard time believing that they have it solved, with all the false starts, the lack of serious cash flow previously claimed by JB on TV, and the lack of ever getting just one processor running at the claimed rates for any long consistent basis.
I have never minded asking the tough questions, and always stated my opinion in my quest for the truth.
I never believed there ever was a good enough reason to "juice" things up and have always wanted to just keep the discussion real/honest. The more and more juice I saw/see has only led me to believe all was/is not well.
Hopefully, the new CEO Kevin Rauber will be honest and transparent going forward. I also hope that was the last quarter with cardboard recycling earnings mixed in with the companies fuel revenue, and that he "keeps it real" going forward, sets realistic expectations and then meets them.
However, I realize this may not be easy for Kevin to do if John tells him things are "completed" when they're not.
I honestly believed when John said their commercial building was completed, that it would have had a cement floor already poured and set -- one in which to bolt the processors onto. I don't think I was the only one surprised to find out there never was a floor until 6 weeks prior to the AGM, or months after the building was said to have been completed. Hopefully, Kevin is not met with similar surprises.
This question is really bothering me, one in which I don't have a plausible answer for.
If JBI spent 3 weeks getting processor number two "just right" for the test with SAIC and it ran perfectly for those three days, then what happened afterwards that seemingly prevented them from continuously running it at 75% uptime for the remaining quarter and selling it?
The SAIC test was a 3 day period from April 25-27.
According to another poster, IR said they spent 3 weeks "getting it just right" - ok, so that wipes out the first 3 weeks in April.
April was the first month of Quarter two, my question is, if the processor was finally "just right" and running perfectly, then what happened to the other two months in the same quarter? The second quarter report only shows 179,420 in sales which were still being combined with cardboard recycling at that time.
The company says that they have 75% up time, there were 61 days in the remaining Quarter, or as the company claims 46 days of uptime. 46 days at $11,968 each would equal $550,528 for just processor number two running "just right".
20 TPD, 109 BBL's per day at 109.80 per barrel = 11,968 in revenue per day, or $550,528.
JBI reported P20 sales that included cardboard sales at 179,420 for the second quarter. I believe the last time they broke out cardboard sales was the 3rd Quarter 2011, at that time cardboard sales were 55,075.00, so let’s say cardboard sales have slumped 10% since then, let’s use 50k for cardboard sales for the second quarter 2012.
That would leave 129,420 for second quarter sales. We know during the SAIC test according to the company they successfully made fuel for three days straight or about another 36K of fuel.
We didn't learn that processor one was broke until the AGM by the new CEO. JBI signed the 1st Quarter report on May 15th 2012, with no mention of processor one being broke, so let's assume that it broke the day after he signed the first Quarter report, that means it had about 11 days of uptime out of 15 (75%) prior to breaking, let’s go further and say out of those 11days it only ran less than 1/2 or 5 days. That would equal around 60k of fuel.
So finally, if we take 179k of income for the second quarter and subtract:
55K for cardboard
36K for fuel made during April's SAIC test
60K for fuel made by processor one prior to breaking
This would leave only about 28K of possible earnings for May and June, with processor one broke and processor two running just right, from what should have been $550,528.
I just don't get how the numbers are so far off; from everything we're being told? JBI already disclosed they have several customers for their fuel, and I believe they book earnings at the time of delivery?
It simply appears to me that processor 2 is still not running just right, or there's another problem somewhere.
Thoughts?
As always, this is all just my humble opinion.
