Plastic2Oil Inc (PTOI)

[janice shell]

Why was the first hit piece authored in July 2010

Which hit piece was this, and do you imply that it was done to dampen the splash of company press? Which press release? They announced in June that they has to re-state financials; in July John held a conference call, they announced they were going to trade on the OTCQX, and they debuted Pak-it's DropShot cleaners on national television.

The reference is to the first piece I wrote for Stockwatch. What prompted it? Well, JBI was a good story. Flamboyant (to say the very least) CEO, 19 press releases in a single day some months earlier, need to restate financials, and so on. That's news.

What really matters is that three and a half years have passed, and not much has changed. Yes, the flagship processor is bigger and, they say, more efficient. But where are those hundreds--no, thousands--of processors that were supposed to be operational by now? Revenues are up, but so are costs. As many point out, SG&A is, and always has been, unacceptably high.

Back in midsummer 2010, the question was not whether pyrolysis could be used to make oil out of plastic; it was whether that could be done economically and profitably.

That is still the question. JBI has consistently over-promised and under-delivered. The company continues to burn cash, and there is a very real possibility that it will not be able to survive much longer.