Replies to post #67754 on Plastic2Oil Inc (PTOI)

[puppydotcom]

being public does not always win out and sometimes it hinders the company .. these other guys are power horses - do some research on them they're also well diversified

[jjsmith]

Very doubtful. Let's do some simple math to see what JBI's claims really are. The claim, which is yet to be proven, is they can make oil for $10/barrell including ALL costs.

Each machine suppossedly can produce 110 barrels per day so that would make the cost $1,100/day/per/processor * 365 = $401,500 per year per processor. Does this sound realistic to anyone? It doesn't to me. How much will it cost to pay a full time person to meet all the DEC and EPA regulations and monitoring for each site, cost of processor, cost of feedstock, salaries, labor, other materials, maintenance on the machines, electricty, taxes, permits, accounting, legal fees, insurance, cost of DEC/EPA employee training, the list goes on and on.

JBI claims the processor is a 2 man job. So lets see what the two men cost. Say you get off real cheap and pay them $10/hour/person plus the 40% cost of just having the employees gets you to $14/hour/person times 2 people times 365 days = $245,280 per year per processor, just for the labor going into running the machine. That doesn't count management or anything else.

So after paying the two guys (at VERY cheap wage) they have only $156,220 left to pay all the other expenses above. Doesn't sound feasible to me. Now lets say they get plastic real cheap, for 1 penny per pound. That would be $146,000 per year in feedstock which would leave them with roughly $10,000 to pay all other expenses!

If they pull it off then great, if not I see big trouble ahead because a reasonable person would conclude that they couldn't have possibly believed that they could make oil for $10 per barrell including all costs as claimed. Making claims that are not feesible brings big trouble. Especially in a public company with shareholders who are friends and family of the CEO.

Keep in mind many people bought into JBI based on this claim of $10/barrell oil. The simple example above provides enough evidence to a reasonable person that this claim is very unlikely to be proven. Maybe the genius CEO knows something that reasonable people don't know that will make him be able to prove his claim?? I don't know, but for his sake he better be able to prove this claim.

HOW SILLY DOES $10/BARRELL OF OIL SOUND NOW?

JBII, when proven with permit and fuel sales, will have beaucoup invites imo. Sometimes it's not the first horse out that wins. However, there will be many winners in this industry. JBII is positioned to be one and it is public.