Sunday, September 26, 2010

Rawnoc opines that JBII, with a $42 million market cap, is very undervalued


Since when do alternative energy stocks wait for profits to get their massive moves?

Perceived profits and/or technological breakthroughs tend to be rewarded handsomely. As an example, Tesla's electric cars lose money hand over fist yet it sports nearly a $2 billion market cap just because of the innovation and hope that maybe it may actually make a buck many years from now. AEHI, another example, hopes to have a nuclear energy plant 5-10 years from now if they're lucky. Market cap nearly $300 million just on the mild local media hype.

According to the EPA, there is no such thing as "pyrolysis oil based fuels".

They recognize renewable fuels which are Cellulosic biofuel, Biomass-based diesel, Advanced biofuel, and Renewable fuel.

Then there are Alternative fuels which include hydrogen, fuel cells, electric, natural gas, and propane.

And of course gasoline and diesel fuels.

Since there is nothing in the JBII fuels except the usual hydrocarbons, JBII pyrolysis derived fuel once separated into the appropriate fractions will meet the standards for gasoline and diesel. The EPA is not interested in where fuels come from, except renewables, because they are interested in the fuels chemical content. As has been discussed repeatedly, registering gas and or diesel with the EPA is mostly a paper work issue.

The EPA is interested in where renewable fuel comes from because they have to report to congress about meeting renewable fuel volume goals.

The list of EPA registered fuels doesn't have a category for pyrolysis oil based fuels because ti has no need for one. Pyrolysis derived fuels are registered under the usual categories.

Selling the output from the processors will not be a problem no matter how you work the semantics.

There is really only one question, that is will the output be sold to refineries or will it be blended and sold as an end product. Perhaps it will be some of each.

JBII.... $42 million market cap. They prove they can make and sell oil at all, there's going to be some insane positive attention coming to this thing, and it won't stay with a piss $42 million market cap. Profits in the future will only add "fuel to the fire" and increase the degree of the run -- not the dependency of it.

For those of you that think you can just simply wait until JBII is already showing large profits then buy a position, if you think you'll be able to buy into it while it still has under a $42 million market cap, you're living in LA-LA land.

Raw

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