Replies to post #58188 on Plastic2Oil Inc (PTOI)

[Rawnoc]

Better question -- exactly what costs magically jumped up in one quarter on a permanent basis? You are hoping/praying despite how little logic sense it makes, right?

" Restructuring Charge
A special, nonrecurring charge taken in conjunction with a consolidation
or relocation of operations, or the disposition or abandonment of operations or productive
assets. Such charges may include impairment losses as well as other expenses, such as writedowns
of other assets including accounts receivable and inventory, and accruals of liabilities for
so-called exit costs, including such expenses as lease terminations, closure costs, severance pay,
benefits, and retraining."

[Rawnoc]

But then again, like I said....there is ONE way that expenses may have temporarily jumped as a percentage of sales and that would be expenses related to this and possible whatever down time was related, change in supplies in inventory, and training in using the machines themselves:

"For instance, on or about January 20, 2010, Pak-It reduced its workforce from 49 to 36 employees as part of a corporate restructuring of the bulk cleaning component of the business. The Company’s Chief Operating Officer, Jacob Smith, is overseeing the transition of the plant from primarily a labor intensive bulk chemical manufacturing company to a highly automated plant focused on production of our line of water soluble chemical Pak-Its. The automation being put in place will allow the Company to operate more efficiently as well as satisfy the production rate necessary to support our national retail launch."

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Gross profit margins will shoot up large from this. And I'm not even counting the margins from direct to consumer sales which always dwarf margins selling wholesale to retain.