I have read your good questions and the replies. i
Post# of 43064
I have read your good questions and the replies. i also learned something from them.
Tech, doesn't it strike you as a poor use of investor funds if a company does not focus on what it does well? This has happened several times with JBI. first of all it was the tape business. now it is this blending plant.
investors were told (I am nto sure if JBI can even be held accountable for this because for all I know it may be from a now-defunct Facebook page) that the output from the P2O plant could be manufactured fro $10 and sold at $70 (or even higher now). That is 700% Gross Margin.
i doubt that the blending plant can offer that kind of margin. obviously to anyone, it was operating as a blending plant before p2o, so it must have some kind of feedstock available that is not dependent on p2O. If the input is a barrel of fuel requiring additives that is worth $70, and the output is a barrel of transportation fuel worth $100, than that is maybe a 40% margin.
rawnoc's explanations are excellent btw.
that means that the p2O plant could be operating with a 700% Gross Margin without the blending plant. The P2O plant is in need of funds to expand or get to that commercially operating state. the blending plant does NOT need the p2O plant to operate.
On that basis, doesn't it make ssense that the funds that were diverted to the blending plant were better directed towards p2O? Investors should be upset about that. Maybe it is small change, only because p2O is a money pit.
And obviously as well, there is too much opportunity for misstating p2o revenues, if blending plant feedstock came from elsewhere. Plus the obvious family tie-ins, thus a non-Arms-length transaction.
what do you think of that?