Plastic2Oil Inc (PTOI)

[Toxic Avenger]

The problems with your analysis:
- IR's estimate of market value is meaningless. Not only is it unstated in the 10Q, it's a number that can only come from the CFO to have validity.
- There's not necessarily a link between COGS used in the GAAP financial reporting and COGS used to value inventory. In fact, the notion that the sold fuel had a margin of near 0 and the unsold fuel had one of 70% defies logic in the extreme.
- If they can't sell a larger amount of fuel then they did sell during that quarter, there's a big problem.
- If production is increasing (let's hope so), then it's likely inventory will grow as well. That increases storage costs and (as mentioned in the last point) indicates a shortage of buyers. A well run business produces products to meet the level of demand. Storing more than a quarter's worth of your product does not indicate such.

Inventory build is often an indicator of a failing business. When it comes this early in a company's history with a low volume of production, it's worse. Perhaps you can get IR to comment on why it's occurring.