Wednesday, March 10, 2010

"SuperSquirrel" comments on JBII iHub members' posts


This board mostly reflects two major extreme views of JBII and John B. as if it were a boxing match in which someone must win and someone must lose and I think this is unfortunate as it focuses on the hair-splitting minutia of "he said she said". It does not help when those who are long JBII give off the cuff answers such as, "did you call the CEO?" or make wild speculative guesses to the answer when it is not public knowledge.

I can understand on the surface the reasoning from those who think this is a "scam" as that was my first impression but when you look closer, it is missing several key "scam" ingredients because:

1) The CEO has not been taking money out of the company or selling his stock.

2) The CEO has not been getting a paycheck (ok $1 - lol).

3) The CEO brought in his personal business that took years to build and only charged JBII for the price of equipment (and it looks like the best year ever for the tape reading business).

4) The CEO has not had a past record of fraudulent activities or fleecing of investors.

5) The CEO is more interested in "stock voting rights" to maintain control of the company than he is in holding millions more in personal shares.

6) The CEO has been good to past JBII shareholders and if it was a scam don't you think the CEO would have cashed in some or all on the $.10 to $7 plus run?

7) Deals are actually being completed. This started with one company and is now four.

All of the above elements added together make a strong case to me that John B. really believes that he has the key to turn plastic into oil. Islechem tests should provide a clearer picture when they are published and I believe we will get that report before the shareholders meeting just as John B. has said.

While it is very good to be skeptical, I tend to give John B. the benefit of the doubt because of the above.

The stock has had a major run over many months and it has been in pullback mode since the last PR's so it may drift lower on low volume and no news. I admit that it is hard to value JBII as the market cap obviously got ahead of itself at $7 and even if JBII can do everything he claims, some of that is currently baked into the market cap and it will take time (it always takes longer than it takes).

John B. is not a typical CEO and there is good and bad in that which probably has caused some of those "red flags". He is unpredictable and yet very responsive. Some shareholders may not like that but most will. Some lessons are only learned by experience and he is still new to the publicly traded CEO role, so there are bound to be some mistakes. Outside the box thinking can be a real asset as long as he also seeks wise counsel and does not let his position go to his head. You never know what will happen next or when solid validating information will be released but the shareholders meeting is not that far from now so it could get interesting really quick. Time will tell.

Everything I state is just my own opinion so do your own DD.

Buying great stocks is important but buying great stocks at a great price is even more important.

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