JBI, Inc. (OTCQX:JBII) Jumps Up Once Again, Half of the Volume Shorted

By Violeta Slavtchevska
Date: Sep 21, 2010

JBI, Inc. (OTCQX:JBII, JBII message board) stock gained extraordinary trading volume over the last two trading sessions. It seems that the latest press release by the company added more credibility to the stock than the recent news that JBII is now traded on the OTC market's highest tier.1JBII.png

For a second consecutive trading day, JBII share price is climbing up and the stock looks like it could finally start a new uptrend. Though, the latest press release will need an official confirmation first to justify investors' revived interest in the company.
Yesterday, JBII jumped 10.39% up to $0.92 within the session and the over 551,000 share volume was five times the average for the stock.

The large interest seems provoked by the news from Friday. According to it, the company has received positive results from the stack test on its Plastic2Oil commercial processor, which confirm that the conversion of waste plastic into hydrocarbon fuels is emitting minimal toxic substances into the air and can be classified as a "green" process.

A corresponding 8-k has not been filed and JBII also do not mention if or when these results will secure them the urgently needed authorities' permission to launch the product on the market and to begin commercial production. In the latest 10-Q, management says that the required "simple air permit" should be obtained on that above mentioned stack test.

Despite of this, it seems that half of the market's participants yesterday were not convinced of JBII stock as a long-term investment and wanted to secure only short-term gains. 50% of all yesterday's trades were short sales, that percentage being 41 on Friday.JBI.jpg

The importance of the Plastic2Oil processor for JBII future should not be underestimated, since if it gets marketed it will be the fourth and the most promising source of revenues for the company. The products of the P2O that the company plans to sell include diesel fuel, gasoline, propane and butane and JBII has invested around $1.5 million in related property and equipment.

Since the middle of last month, the stock is traded on the OTCQX, the premier tier of the U.S. over-the-counter-market, making it subject to higher investor consideration and to superior quality controls. Hopefully, it will help to gain also "quality investors" in the future.