The problem with that is that they have been doing

The problem with that is that they have been doing this every quarter for 5 years. Hardly non-recurring.

I just find it amazing that investors have accepted this without question. It was one of the first things I noticed and far outweighs any possible output from the processors. They would have to have approximately 300 times the fuel output to break even. Who are they trying to kid? 

It does not even take a basic knowledge of accounting. All you need to do is look up the definition of SG&A . Here:


"

Definition of 'Selling, General & Administrative Expense - SG&A' Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. Direct selling expenses are expenses that can be directly linked to the sale of a specific unit such as credit, warranty and advertising expenses. Indirect selling expenses are expenses which cannot be directly linked to the sale of a specific unit, but which are proportionally allocated to all units sold during a certain period, such as telephone, interest and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, heat and lights.

"

2.7 Million last quarter. What a party. And none of it related to the production or sale of fuel.


I don't get into accounting details too often either, but this is so obvious one can't help but notice it. 

First of all, I don't usually buy companies that are not profitable. Gave it up years ago. It was my first foray into the market. I found that management in most cases simply cannot turn companies around. With the criteria I look for now, the company would have to be profitable. All I learned in Finance was that everything affects everything else. So, I look for a positive, low PE. If I have to look at financials, I look at the eps and work backwards. I look for good revenue growth, improving financials, a low PE, and a good dividend. The combination is hard to find, but they are out there. A good chart is helpful an good for timing the purchase.

So no, I would normally never look at a line item like SG&A, but in this case, it is glaringly obvious that there is something wrong. Heddle deserves to be asked what is going on. Given the definition above, money is being siphoned off somewhere.


If  you want more proof, take a look at typical financial statements for a refinery. You can find that on-line. Biggy posted it twice on iHub. You will find that SG&A is no more than 5-10% of Sales.

You are all wasting your time worrying about processor #3. At the end of the day it won't matter at all.