'Make my Day' Rawnoc's take on the JBII 10Q

JBII 10Q -- SOME POSITIVE TIDBITS:

(1) P2O segment already showing a gross profit despite the small sales! ($23,380 in gross profit on sales of $81,101 for the P2O segment)
If P2O sales can be profitable right out of the gate when tiny, just imagine how profitable P2O will be as sales multiply?

(2) "As of August 19, 2011, with a NYMEX crude price of $82.81, Coco Paving is presently ordering and purchasing full tankers of petroleum distillate at $109.80 per barrel. Coco Paving has stated it is pleased with our Plastic2Oil fuel and they are ordering from the Company on a regular basis."

(3) "The Company retained two fabrication vendors to produce racked modules for Plastic2Oil processors. All modules will be manufactured in the United States. The Company’s management and new hires are working with the fabrication vendors to expedite manufacturing. During the first and second quarter of 2011 the processor was modularized for simplified expedient production and assembly of processors offsite. Processors #2 and #3 are being installed at the Plastic2Oil factory at this time, in modular form."

(4) "The P2O processor is capable of producing #6 fuel, #2 fuel, diesel, and light naphtha. The Plastic2Oil processor has been tuned to reduce naphtha production to less than 2% because the market price for naphtha is significantly less than for #2 or #6 fuel"

(5) "Chrysler conducted an extensive audit and now ships free plastic to our factory."
"After a full review, General Motors is also now providing free waste plastic to our P2O facility."
"The Company receives free waste plastic for our Plastic2Oil processor(s) from Chrysler, General Motors, major food packagers, dairy companies, agricultural plastics, and many other sources. The company is recycling thousands of gas tanks, bales of plastic film and many other free plastics that are usually sent to landfill. The Company does NOT pay for any plastic. None of the plastic that the Company has received to date has required sorting."

(6) "the Company also designed and has nearly completed manufacturing of a premelt system to allow waste plastic to enter the processor whole in bale form, or in large pieces (e.g. gas tanks, bumpers) without shredding or granulating the feedstock. This premelt system will maximize production at third party facilities (i.e. paper mills or MRF sites) and other waste stream sites by allowing minimal handling of feedstock. Management’s highest priority is bringing modular processor #2 and 3 online so the Company can become cash flow positive"
"During the second quarter of 2011 the Company designed and engineered a premelt loader for the Plastic2Oil processor to eliminate handling, shredding, and bagging of waste plastic. With the premelt loader, bales or supersacks of plastic are set on a conveyor and then are loaded whole into the premelt reactor thereby eliminating shredding and much handling. During the modularization of the processor, the CEO was able to eliminate the off gas compression system in favor of a simplified low-cost off gas handling rack (4’ x 4’ x 4’) for better control and at 1/5 of the cost. The cost savings through modularization has been used to offset the cost of the premelt loader."

(7) "After months of comprehensive due diligence, RockTenn (NYSE:RKT) executed a 10-year exclusive agreement for conversion of their waste plastic into fuel which has been measured at thousands of tons per day."

(8) "The Company is purchasing a machine shop a few minutes from the Plastic2Oil factory so that additional processor assembly and work can occur while the Plastic2Oil processor(s) operate. The Company has also hired a mechanical engineer, a steel waterjet cutter, electrician, welders, more operators and material handlers to train for offsite locations."

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