GWMAN opines on growth potential of JBI

GWMAN is an enthusiastic supporter of JBI's growth potential. In a recent iHub post, he shares his opinion with JBII board members in a comparative analysis.

Posted by: GWMAN Date: Thursday, January 07, 2010 11:51:28 PM

It is not as big of an IF as you think.

John has already told you that it works. You either believe him or you don't. But your lack of belief does not make it less likely to happen. It only makes it less likely you will stay around to enjoy the ride.

And, yes, I will compare this company to Google. It took Google 10 years to generate $22 billion in revenue. With just P2O and just land sites, not counting any ships, JBII has set a plan to put up 2500 sites in approximately 5 years or less. At current WTI prices, EACH site may well generate up to $5 million in revenue per year. That is $12.5 billion. MORE than half way to Google's $22 billion in half the time, making Google's $22 billion in 10 years an acheivable mark for JBII.

Now, some of that 12.5 billion won't happen, because it is unlikely that both chambers at a site will run all the time and there will be some JV's, reducing the revenue going to JBII. But then add in the ships. How many will there be? 5 or 10 or 15? We just don't know yet. Add in the the highly likely reality that 5 years from now oil will be closer to $150 per barrel, not $75. Add in what JBII will do separately to address tires around the globe. Add in Pak-it, which in 5 years may be generating several hundred million in revenue and a spun-off entity, bringing more value to JBII. Add in the tape/microfiche reading business that will be happening all over the globe. Add in the next disruptive technology JB will disclose from his archives.

The reality is that this company has massive potential and I am sure there were lots of people saying Microsoft would never be huge. So, maybe you find some of our descriptions and calculations as dreamy and unrealistic because you choose to be conservative in how you see the future. So be it, that is your right, but you should note we are doing the math and have models and working from what our honest CEO has told us thus far. We actually have a variety of facts and evidence for our enthusiasm.The price of a share all comes down to number of shares outstanding, earnings and the multiple the share price gets from investors.

A share of Buffet's Berkshire Hathaway is somewhere around $100K for one share.

By the way, Google is around $600/share. If I remember correctly, their outstanding share count is over 300 million. Cut that number of shares in half to 150 million and Google's share price would be $1200 right now.

Note that the total number of authorized shares for JBII is 150 million. Our current outstanding shares are only 46 million but as JBII grows and buys companies, our outstanding shares could theoretically be 150 million one day. So, if we can generate $22 billion and keep our outstanding shares to 150 million or less, we can have a future share price of $1200.