Sunday, August 29, 2010

"SuperSquirrel" opines on JBII stock price fluctuation


A tale of two JBI's. It was the best of times, it was the worst of times...

AKA - The short kindergarten version of why we are where we are today.

Only time will tell if JB can produce on the claims made and take JBII stock to new heights or the P2O process proves not to be a viable business model and JBII will become valued based on the other businesses.

At this moment in time there is a good reason that the stock is priced where it is right now. It looks to me like JB was feeling like superman before the AGM and could spout out what ever thought came into his head on FB (I do not think it is fair to call them promises but more like current thoughts and plans that would change as the situation changed). He was basking in the spotlight and if he had not encountered the oxygen sensor problem and the off-gas problem, then the stock probably would have held and continued upward as long as he had received the permit and had the media event in a timely fashion. Then for the icing on the downward spiral cake, we have the E status then losing the OTCBB status along with the large number of shares becoming unrestricted. I would bet that JB is also taking the good advice from his lawyers and going silent on FB as they are now communicating though professional channels like a big board stock. This stock has been punished for talking of NASDAQ and then being delisted even though their books are now prepared to uplist to a higher exchange once they get the stock price back up into qualifying range.

We are all here to make money and you cannot argue that dropping from over $7 to under $.80 so far this year is bad for long shareholders (except maybe for those of us who were able to average down). JBI as a company has grown up (with a top firm auditing). JB appears to be also growing up (ceasing FB musings).

I think most of us can agree that JB must know right now if he has built a P2O processor that is cheaper to operate, cheaper to build and also more efficient than any current competitor. So the key questions to me right now are:

1) If JB does not believe that he has "the goods", would he be using the capital resources to build additional processors and updating the blending site while forgoing his CEO pay until after after a permit is obtained? Don't you think he would be saving cash for another venture or to line his pocket, if his P20 did not work better that competitors?

2) After all the new cautionary statements with the new audited financials, would JB stick his neck out on a limb by basically stating that the company has enough funds to get P2O into production? This is very important because the price of JBII stock ($.10 or $100) will not have any impact on the companies operations UNTIL they need to raise additional funds. If the permit happens and a reputable independent 3rd party can give a production report that will verify the efficiency claims and cost effectiveness of the system, then the media exposure should put JBII stock back to new heights and beyond as investors see the long term value IMHO.

3) Will there be other problems and delays after the permit and fuel is being produced? Yes, but with income coming in from fuel sales they will not have the impact that the stack test and permit have had on the stock price IMHO.

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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