Replies to post #70481 on Plastic2Oil Inc (PTOI)

[scion]

JBII shares are currently priced at an extremely exhorbitant premium in relation to the actual sales they do. There is a substantial amount of hype and positive expectations already built into this share price. JBII market value is clearly not based on their tangible assets as it is considerably higher than the value of their assets minus liabilities. They are a small company competing with larger competitors with greater resources. Their ability to grow over the long term will be limited unless this situation is corrected.

Hotstocked's research report.

http://www.hotstocked.com/pdf/JBII-92951-report.pdf

[stonehenge]

This quote proves that they really do NOT have a clue what JBII is all about:

JBII market value is clearly not based on their tangible assets as it is considerably higher than the value of their assets minus liabilities. They are a small company competing with larger competitors with greater resources. Their ability to grow over the long term will be limited unless this situation is corrected.

a. A valuation of this (or any) company is NOT based on the value of the assets minus liabilities. The author should look at the free cash flows, which are expected to be generated from these assets.
More specifically, because a valuation is forward looking by definition, it should be based on the free cash flows that can be generated by the FUTURE assets.
This report does nothing more than looking at the (historic) picture of the balance sheet and -as a result- draw extremely dumb conclusions.

b. As we all know, even the DEC (as well as IsleChem) seems to have admitted that, JBI has a unique process that seems to be not existent until now. Why does this report talk about competitors? As we all know, this is a regular discussion on this board, that has NEVER lead to bringing up even ONE competitor with a (more) viable and efficient P2O process.

c. Talking about a limited possibility to grow even tops the former dumb conclusions.

The fact that they are claiming to have done 'research' on the company JBII is unbelievable. Let me tell you one thing: they did not perform ANY solid DD at all. And so are clearly the ones that applaud this report.

Toc Toc....

[Zardiw]

You mind posting the date of that report???....Seems like that's probably from when it was trading at $7...and maybe they had a point back then, but certainly not now......JBII is like a drug company about to release the cure for aids or something...Yeah, the price would be inflated, but look what would happen when they produce.....Just like JBII will be generating huge revenues soon.........z

[grantg2]

Shows how little Hotstocked knows about JBII, huh?

ROTFL... surprising how much credibility you can add for just talking with real people embloyed by or affiliated with JBII.

My guess is that HotStocked talked to NO ONE with any real hands on at JBII! Maybe Hotstocked depended on iHub JBII. LOL

It makes a difference... even many FAMOUS mutual fund managers BRAG about how they are always eyes on and talking with people working at facilities of stocks they own...

just as MANY JBII Longs have done before the AGM, at the AGM, and since the AGM. Beats making a lot of speculative guesses and assuming the worst.