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Rawnoc

11/17/13 11:21 AM

#249811 RE: buenokite #249808

You are partially correct. They can't get permitted and set up machines in a way that's more profitable than selling the machines. That is true.

We already know it takes significant time and money to add additional machines which would require another building, another series of permit modifications, etc. Even if the current processor cluster makes them wildly profitable, it is still to their advantage to sell processors 4 & 5 rather than go through the long time and expense of building them out.

Now if they were planning to sell processor 3, you'd have a point, but there are no plans to sell processor 3. Only future processors which take a fraction of the time to build and sell than they take to build, develop the infrastructure, and get permitted.

A solar panel manufacturer could build solar panel farms OR it can sell solar panels instead to others. They usually choose to sell the solar panels instead and realize much quicker profits. JBII, likewise, is better off selling machines rather than build new plants. This is especially true since most of the build of processors is outsourced. If they are successful in selling processors, they'll be able to step up the number that can be built and sold in larger quantity, something that would be extremely difficult, expensive, and a logical challenge to build a large quantity of plants instead.