Plastic2Oil Inc (PTOI)

[the big guy]

You are correct.. that will be the next barrier. However, it is meaningful because in the case of a capital-intensive company like JBI, cfp does not mean much. Companies like JBI carry alot of Plant & Equipment on the books and they must make sure it is producing for them. When I worked for that industrial gases company I worked in a group whose sole business was to earn an acceptable return on invested capital. That money was watched very closely, and since they were going to the banks to get financing for these projects, they had to be analyzed to death and validated every step along the way. Then all hell broke loose until it was on-stream (producing).

The problem with JBI is that none of that analysis has been conducted. Much money has been spent on Plant and Equipment, what is the return on that investment? I have treated this company like it was one of the internal projects I used to work on, with an expected ROI of 20-25% over 3 years, but how else shold one look at it? Investors should be given a similar return to that hurdle rate.

cfp for JBI is meaningless given the invested capital. Profitability is meaningless as well, for the same reason.

I have seen companies sit for years being cfp before making money... that is all that matters to the stock price. It is a meaningless milestone that companies use to claim success, it means nothing, especially in a capital-intensive business like P2O.