Replies to post #135016 on Plastic2Oil Inc (PTOI)

[dreaminbig]

How's number 2 & 3 coming? Wasn't that a priority for cash flow?

[Artiztic1]

You can't have it both ways.

First you say:

(1) "P2O segment already showing a gross profit despite the small sales! ($23,380 in gross profit on sales of $81,101 for the P2O segment)If P2O sales can be profitable right out of the gate when tiny, just imagine how profitable P2O will be as sales multiply?"

Then you say:

"You're unfairly including the salaries of at least 5 workers at the recycling plant."

So let me get this straight you want to include the gross profit made from the 5 workers at the recycling plant, and not include the cost of the 5 men.....things that make you go hmmm??

It's interesting in the 10Q how the cardboard/plastic recycling is merged with the plastic to oil division. That way one can't truly see the true gross profit seperatley, more fuzzy math.

It's also quite possible the only gross profit at all in the P2O segment is derived solely from the 5 men sorting/recycling cardboards and plastics there.

Time will tell.

[BigGreen101]

Actually, from the definition that you provided I did not inaccurately include workers. There was also the general administrative cost, sales cost exc. that JBII accounted for in their financials. This generated a huge loss.

As for the selling 1000 barrels vs 100 barrels is not an argument IMO. JBII is sitting on probable thousands of barrels, since Dec 15, 2010 when they were given the go ahead by NYS DEC. Thus, it is not that they only made 100 barrels, they only sold a small proportion of what they generated. One would believe that the overall cost is normalized over say 10,000+ barrels and not just 100 barrels.

As for the starbucks analogy, one cannot use that here. Employee cost is fix, but JBII can store the rest of the fuel. Thus, the end result is a fixed cost for the fuel. For starbucks, if they do not sell the coffee they discard it, no more revenue can be made. JBII can store the P2O and make revenues later. The cost to produce is set and should be reflected in JBII numbers that they reported for the turn cost of price per barrel. It JBII employees produce more P2O during the same period of time, then the cost per barrel decreases.