Plastic2Oil Inc (PTOI)

[the big guy]

I would not say "cut-and-paste" but implausible. It actually reads fairly well. This is a short list of what is implausible in the document:
- it is too late in the development of the technology for an order-of-magnitude estimate to be applicable.
- an audit is not the right word to use for this kind of analysis. An audit is imply an exercise to make sure a process meets a standard or to assess what is there.
- a 3-day trial does not fit with an order-of-magnitude estimate or even with this kind of analysis. It may validate assumptions of a much later stage of analysis.
- The EBITDA number is completely without basis and not applicable to JBI. JBI has no Amortization, does not pay interest, and that figure does not even appear on it's balance sheet. No assumptions are stated, which they should be.
- an accounting number is not applicable to the kind of analysis being undertaken. An ROI or NPV analysis would be appropriate. Both of those rely on a summation of the discounted positive and negative cash flows resulting from the construction, commissioning, and startup of the plant. Basically, a project should go forward of the resulting ROI is greater than the hurdle rate. Given a hurdle rate of 10% (Cost of capital) for JBI, 20-25% may be a reaosnable figure.