Replies to post #114629 on Plastic2Oil Inc (PTOI)

[BRIG_88]

An interesting view...one that i didn't share when the stock was below .60 and i was loading shares while you were calling for a further decline...and one that i don't share now....JBII will be cash flow positive with just 3 company owned machines running...one is up,running and producing fuel the company is already selling and the other 2 are being built...you don't understand how JBII got to 4 bucks?....the rest of us do and so does the market.....we aren't looking at the here and now....the market looks 12 to 18 months down the road....and has priced the stock accordingly....JBII isn't done landing fuel contracts....plus JV's coming....and THAT is what the street is looking at.....so the question is....will you be making the same statements when JBII is at 10 bucks a share? LOOK OUT ABOVE!!

[snow]

the big guy

This company is actually close to being profitable. What matters most is the stupendous future prospects. There is enough waste plastic for more than a thousand of processors and one processor can generate enough profits to justify a stock price of about 50 cents.

[Steady_T]

Many people have a conservative investment philosophy, it reduces risk to a level they feel comfortable with. Such a philosophy prevents them from investing in a start up like JBI because of the risk.

The unavoidable consequence of that investing philosophy is that those investors miss out on the truly great stocks.

JBI is a quite unusual company. It has a new solution to a long standing problem that is cost efficient and non polluting. There is no serious competition on the horizon at this time.

But as you pointed out, it is not making a profit at this time. By the way, how long did it take Google to turn a profit?

[Rawnoc]

Middle east billionaire(s) seems pleased with the company.

[MikeDDKing]

I think you are really wrong on JBII. Most technology startups are nowhere near this close to massive success. Let me summarize:

Tech startup companies fall into two basic categories.

The first category are companies producing a revolutionary product that has no current market and they generally need to spend significant money on marketing. This is a very risky endeavor because the product may not catch on due to lack of interest or insufficient/poor marketing.

The second category is companies that are producing a product that other companies (usually much larger) are also going to produce. In this case they perhaps have a better mousetrap but have formidable competition. It is very difficult to beat companies with greater resources.

JBII fits into neither of these categories as they are producing a valuable commodity product that nobody else can produce with these kind of margins. They have virtually unlimited free feedstock to enable them to create fuel with massive margins. Their marketing costs for fuel are very low relative to most startups.

Also, the products produced by technology startups often have problems with obsolescence which is highly unlikely for JBII.

JBII is a simple investment thesis:
1. They are getting feedstock for free and can produce at massive GM that likely will ultimately be greater than 90%.
2. Their machines are very inexpensive thus their overall operating margins are very high. Likely these operating margins will ultimately be much higher than 50%.
3. They are producing a product that already has very high demand.
4. As far as we know, nobody else has been able to do this with these outstanding economics despite many people trying very hard for years.
5. It is relatively easy for them to scale their business enabling massive profits.
6. JBII has overcome many big hurdles (permitting, mass production of product, and initial sales). To a great extent, their future success is just a function of their execution.

In short, JBII IMO has very high odds of success.

[quarterdeck1]

(and I almost never invest in companies that are not close to breaking even)

does this mean since JBI has recieved both the the Air and Solid Waste permits that alot of people said wouldnt happen with out fines and other red tape fahooey

does this mean JBII is starting to look attractive to savy investors above $4.00 as opposed to the lucky people who invested at lower levels?

(the fact that they JUST got permitted after a year of promises is nothing to do backflips about.)

In Dec 2010, JBI was issued a Consent Order to operate a P2O processor while State Facility Permits were acquired. JBI filed all documentation and applications with the NY DEC within the timelines identified in the Consent Order.

(nothing to do backflips about)

On May 2, 2011, JBI, Inc. (“ JBI ” or the “ Company ”) and Smurfit-Stone Container Corporation (“ Smurfit-Stone ”) entered into a Referral Agreement (the ‘ Agreement ”). Pursuant to the Agreement, Smurfit- Stone shall refer to JBI selected clients (“ Smurfit-Stone Clients ”) that may be producing significant amounts of plastic feedstock to assess the potential use of the plastic feedstock in JBI’s Plastic2Oil™ process. Upon each introduction of a Smurfit-Stone Client to JBI, JBI shall asses, in its commercially reasonable discretion, whether such Smurfit-Stone Client generates a sufficient amount of plastic feedstock to ensure that at least one JBI Plastic2Oil™ processor operating at such Smurfit-Stone Client’s facility will be able to operate at a minimum capacity of (10 metric tons/day).

$3.12

On May 5, 2011, JBI, Inc. (“ JBI ” or the “ Company ”) and Oxy Vinyl Canada Co. (“ Oxy Vinyl ”) entered into a Purchase Order Agreement (the ‘ Agreement ”). Pursuant to the Agreement, Oxy Vinyl has agreed to purchase approximately 214 of JBI’s low sulphur heating oil at a cost of 109.80 per barrel.

$2.81

On June 10, 2011, JBI, Inc. (“ JBI ” or the “ Company ”) and Coco Asphalt Engineering, a division of Coco Paving, Inc. (“ Coco Asphalt ”) entered into a Supply and Service Agreement (the ‘ Agreement ”). Pursuant to the Agreement, the Company has agreed to supply Coco Asphalt on a weekly, per demand basis with petroleum distillate at a cost of $109.80 per barrel.

$3.59

(That is why the share price is not justified)

$4.10

[soss]

TBG; Profits will be huge as log they are installing more machine and the sales are above oil prices on the WTI.