Plastic2Oil Inc (PTOI)

[Rawnoc]

That is terribly poor cash flow analysis not based on reality. I prefer reality.

Cash Flow from Operations
For the year ended December 31, 2011, we used $6,975,421 in operating activities.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8491922

That comes out to less than $600,000 per month.

Use full year instead of a single quarter? They raised over $11 million in May 2012 and promptly paid off some outstanding liabilities. The negative cash flow was unusual. They paid off a lot of debt that doesn't even exist any more yet you are analyzing it as if this already-paid-off debt will magically reappear each quarter out of thin air.

In short, liabilities fell off a cliff last quarter.

In addition, cash expenses probably got reduced even further. For example, they sold off Javaco. Another example, they reduced their legal expenses by bringing a lawyer in house (not to mention Pacer updates died).

And your analysis of gross profit margins is totally wrong. They were unsuually high since production involved an entire NYSE: SAI audit included and the fuel sales were small. Having 25% gross profit margin on such SMALL sales is a huge thing -- any investor or analyst experienced in production profit analysis can tell you that margins go up a lot with volume, and it's virtually unheard of to have any profit margins at all on such tiny sales. Using the popular McDonalds analogy, if they sell one hamburger all day that hamburge will have a cost of goods sold of like $3,000 probably. But if they sell 1000 hamburgers, they may have a cost of goods sold of 20 cents each.