Tuesday, June 15, 2010

"BigGreen101" shares his thoughts on JBII investment


I have worked for a very small company that was trying to bring a machine to market (biomedical field). It can be a very tough road. For they spend 4 years building two prototypes and then another 2 years trying to validate the system.

As compared to my Sept 5, 2009 posting, I feel much more confident that JBII will be able to bring the large production model to market. They have one built, which is a huge plus. As for the ability to roll out dozens of units in a year, I do not think so. Why? Well, it reminds me of building swimming pools 20+ years ago. With a well-trained crew, it takes about 1.5 days. JBII has a much bigger toy and no crew(s) to build them. Thus, the time to set up might be lengthy. Then getting the supply chain in order will take time. As more people get involved with JV, I think JBII will have more experience and things will accelerate.

It all comes down to are you and any other investor willing to wait 1-2 years to have this pan out? For me, it is a YES! I see a huge potential here. Now lets also considers other positive factors of JBII. They are not reliant solely on P2O for their business. Thus, it P2O is delayed, the company has other revenue generating means. As JBII grows through acquisitions, they become less dependent on P2O as a make or break machine. This is not what happens with most start-up companies that I have invested in. They usually have one product or concept. JBII has broken away from this. Once they start generating significant revenues, I could see them acquiring more target companies.

As for buying, I think JBII is a good deal. The PPS might drop down to as low as $0.80, with investors trying to take their profits from the PIPE deal. That is fine with me. It will give me a chance to further build my JBII position.

Cheers

No comments:

Post a Comment

Please comment on this post.

Note: Only a member of this blog may post a comment.