Thursday, November 18, 2010

stonehenge disagrees with negative skeptic & predicts bright future for JBII


I dare to disagree.
*Money seems not to be that tight, as has been pointed out a couple of times today and yesterday. See the 10Q on 'liquidity';

*Shares handed out: if you count the amount of shares that have been withdrawn and compare that amount to the minor amount of shares rendered for services or to commit employees, I still think we have been witnessing a negative dilution in 2010.

*Profitability has yet to be proven, I agree. But THAT is where the bets are on the table, LOL.

In addressing the future earnings potential you have to have a feeling on potential sales volume, growth margins, costs, etcetera.

Assuming that the P2O process does have this revolutionary USP's (which have been confirmed by IsleChem and the DEC) and assuming that the production costs per barrel are less than $10.-, while being able to sell it for apx. WTI, and assuming the Capex of a processor are apx. 400,000.- this leads to a conclusion ex ante that this might become an ultra profitable business model.

By the time the definite proof you seem to be asking for will be released (10Q, 10K), the pps will be much higher. No doubt about that.

In investing there's a golden rule:
The (by the general market participants perceived) risk is 1-to-1 correllated to the potential and required returns.

The main question is: are the investors/participants in the general market as well informed about JBII (at this moment) as the relatively few who have been digesting and DD'ing this JBII concept in detail?

It is obvious that your perception of the risks associated with investing in JBII is much higher than the perceprion of those who think it is undervalued.

And that's the reason people win or lose money in the stockmarkets. My bet is that the current JBII shareholders are going to make huge gains, percentage wise.

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