Friday, August 6, 2010

"Estimated Profit" predicts significant appreciation for JBII


In my honest opinion, in the next 60 days (better said would be 60 days from now or the bottom yet to be set, if it hasn't already bottomed), JBI will hit $3.00:

From .80, that’s a 275% gain

From .65, it’s a 361% gain

From .50, it’s a 500% gain

Nice that it could nearly double from nearly a double from todays prices.

From there, it will most likely be a very strong battle again between the bulls and the bears somewhere between $2.50-$4.50. New arguments will take root for each case. It takes time for news to travel through the proper channels, and for funds to move into action. Supply will most likely be plentiful in these areas from:

1) Those who take the opportunity in the near term.
2) Those who swore they would take some or all their profit if it got back to this area
3) Thomas Kidd’s potential 2.5 million shares (if not already sold or some derivative trade on the shares have been made for some or all of the position. Its possible litigation will have this supply locked up for a longer time, but could well be wishful thinking on litigation or already traded against)
4) .80 PIPE shares

Nearly impossible to estimate how long it will take in this new area, but once things come together, this supply will be eaten through, and the ascension towards double digits should ensue. I believe JBI will reach $20 once they prove the processor can:

1) Produce 100+ barrels of fuel a day, at a cost near or under $15
2) The processor cost around $200k to build
3) Can process 20 tons or more of feedstock per day
4) Seem durable enough to run 6 of every 7 days
5) The processor can be easily replicated, built, and installed

Timelines are always incredibly tricky to predict. I believe all 5 variables above could be proved by as early as December 2010, and conservatively by April 2011.

If from there it is shown that one or more municipal waste entities, large waste management organizations, or large energy corporations wants to expedite the implementation of JBI’s P2O process, the stock has the potential to reach $50, even $100+ in the coming years.

The reason I am incredibly bullish at this exact moment on JBI is pretty simple. The processor is finally ready to give us the proof of the concept as it is running in a "steady state". JBI has recently said they have enough cash for the rest of the year. So, they have 90% or more of the R&D of the processor completed, plenty of cash, and have a scheduled date to perform the stack test that leads to a permit. JBI is on the verge of commercial production and proof of concept.

Disclaimer: Past predictions have been known to cause nipple stimulation, loss of breath, nausea, vomiting, LOSS OF APPETITE, financial death, and laughing out loud while falling apart.

There is a reason that the stock is sitting this low. JBI has hyped up and over promised and under delivered on a number of items. Investors have been led to believe that commercial production was imminent on a number of occasions. Original timelines are off by a year. Many strongly talked about and PR'd events still show little or no progress. This is the point in time where the vast majority of stocks get buried under the pressure of shares used to raise funds. It is my strong belief that the problems are now in the past, and are 95-99% done hindering the company’s ability to execute. I adamantly believe that a much stronger foundation has been poured, and the school of hard knocks has made JBI wiser. Execution of the P2O business division finally seems within reach.

No comments:

Post a Comment

Please comment on this post.

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