Replies to post #87234 on Plastic2Oil Inc (PTOI)

[StockSpock]

It's quite simple, the fuels produced by the P2O process do not need any further refining. No need to sell to a refinery for less than what you can sell a finished, blended product to a retailer or end user.

It does not bother me in the least that JBI is looking to increase their profit margins through a value added blending process, for which they have hired an expert to oversee.

[Rawnoc]

Who says they "need" him? They want to maximize their profits just like anybody else.

Why sell for $88 per barrel of you can get say $130 per barrel?

[Justice37]

JBI were able to get a blending site, for next to nothing. The fuel does not need to be refined. Why sell it to a fuel blending facility when you can blend it yourself and keep those profits.

Colin, also has a lot of contacts, has worked closely with government officials in the past on fuel related issues, and will be more of an asset in selling the fuel and working with whatever current buyers may be lined up and with buyers in the future, he is an oil person, that is his greatest benefit to the company. I think the blending is something he has a hand in but more of it would be in overseeing the process.

[Steady_T]

You seem to have a problem with the concept that there is more than one right way for JBI to proceed.

I'd like to see some fuel sales, but I'm not privy to all of the issued involved.

As a practical is doesn't matter if they sell one lot to refinery just to demonstrate that they can sell fuel, or if they wait a bit and sell fuel under s long term contract.

I am impatient, however, what is in the companies long term interests is most important.

[HomerRomer]

I bet that JBII would be doing that same thing you mentioned if he did not get a HUGE deal on the blending site. If JBI had to build a new blending site for $3-4,000,000+ near their processing plant, I bet they would not have gone that route already. But it was a no-brainer investment that I'm sure was in JB's master plan the entire time. It borders on genius if you look at the numbers and potential! If the blending facility brings in the same revenue as in previous years and enables JBII to ask just .06% more for their fuel, they have the facility paid for in one year. It will probably take a matter of a few months max to pay for itself, IMO.

A couple years ago, I went to a sheriff's auction and came home with another banquet facility for $200k that would have cost me $2,000,000+ to build new. I still feel pretty good about my deal, but JB's makes my purchase look like I got ripped off, and his will make MUCH more money than I could ever dream of!

"Originally, costing about $3,000,000 to outfit, the site previously generated over $230,000,000 in annual revenues. Historically, the site supported 80 tanker trucks per shift and used four high speed bottom loaders to fill the trucks. A purchase agreement in the amount of $130,000.00 has been signed and the Company anticipates the transaction to close within 30 days."

http://www.jbiglobal.com/news/2010-press-releases/20100212-jbi-acquires-fuel-distribution-and-blending-site.aspx

HomerRomer