Replies to post #254873 on Plastic2Oil Inc (PTOI)

[ponzi_implosion]

Irrespective of a purchasers expense structure and costs they will look at return on investment. If some posters here are accurate in their machine sale price estimates of over 5 million each, $15k in gross profit is not going to cut it. In addition, JBI does not have to pay itself licensing fees whereas a buyer would. How much of the $15k in gross profit be taken b those fees? If you say 'not a lot' then JBIs new business model does not make much sense.

[the big guy]

Yes that is exactly what I am saying and that is exactly how any company would do internal capital budgeting. Make vs Buy is a common decision that has to be made, so in looking at JBI, they would be looking at how optimally to use the same budget that funds internal projects. Therefore it has to meet the same criteria. So, yes, I devised a simple spreadsheet that looks at an initial capital outlay and projects PROFITS (not Revenues) over 3 years from P2O. In order to BREAK EVEN, they need to PROFIT 170k/quarter. And YES, JBI is nowhere near that figure.

It is simple. Just take a negative cash flow of 2 Million in the first quarter, use 15k/ quarter for 3 years. Discount back by 4%, and look at the totals. It does not even pay off the capital Cost. $170k/ quarter does. It is simple math that any potential purchaser of P2O will do.

Wonder why JBI has been losing so much money? It is this (the basic uneconomic nature pf P2O) and the SG&A. Both are killers.