Replies to post #4937 on Plastic2Oil Inc (PTOI)

[techisbest]

b9: You may be mathematically challenged, but this was simple arithmetic and you were up to the challenge. How many else were?

[GWMAN]

Why are you concerned about how many tapes are in their {b]backlog?

Are you assuming they get no more?

And even if John had an idea of how many tapes per year he expects his business to get, it is inappropriate for him to give that projection at this time.

And on top of this, it is very clear from the info provided thus far, they intend to recycle plastic from a variety of sources and that the tapes source is really just one source that increases margins a bit.

IMO, you are focusing on something (tapes for P2O) that is a tiny part of the business plan.

[buenokite]

A variation of my point on why guidance would have been so helpful. Everybody says "here is two days of revenue do the math." But what inventory of tapes do they have and expect to receive?

They seem to be in a great position to provide a very clear business outlook with P2O as icing on the cake. They missed it with this 10Q in my view.

[umiak]

gee, i wonder why they have 70 tape reading machines?

[micham2012]

I did the same math and came up with the same numbers, and I called Katie to inquire. My understanding from her is that there is no shortage of tapes for them to read (i.e., millions). In fact, if I understood her correctly, NASA continues to generate tapes on an ongoing basis that need to be read by the Company. FWIW, she was very nice and I am quite certain she was straight with me -- she was "unrehearsed" to say the least. I can understand why the Company is looking for an IR person.

Obviously at $22 or so per tape, the revenues from the 50 tons of tapes is only about $450,000. At the same time, you can understand why they don't want to store more than 50 tons on site.

I don't think you can tell anything about the size of the tape reading operation from the 10Q. I had hoped for some guidance in this area, as the tape reading revenue provides a floor for the price of the stock.