The agreement JBI has with Madison County is great. The free 'advertising' that is being generated by the agreement is more valuable than any of those media credits ever were.
(I am posting from my desktop, so this post will have real paragraph breaks)
I was doing what is supposed to be done on these message boards. I was breaking down the information provided.
The article stated that 2,800 tons of AG plastic are produced annually in all of NYS. I calculated that it should be possible to process that much plastic in three weeks, or less if the higher throughput they say they can achieve is possible.
The subsequent article posted by Commando states that only 80 tons of plastic come from Madison County and 630 tons come from central NY counties.
At this point Madison County is just starting their recycling program. They want to extend to surrounding counties.
How long will it be before enough AG plastic is available to JBI for even one week of processing? The 80 tons per year from Madison County can be processed in a couple of days.
I realize Madison County is not the only source of plastic for JBI. But it points out how difficult it is to find good sources of waste plastic.
I continue to believe that everybody is underestimating just how difficult a problem this is. There are tons and tons of plastic waste that is not being recycled. But most of it is not in a form that is easily collected. New recycling programs, like the one being started in Madison County, need to be started.
There are sources of industrial waste that will be the low-hanging fruit for JBI feedstock streams. Like Rock-Tenn. But I think even industrial waste streams are hard to identify and lock up. How many industrial processes exist with plastic that can be processed by JBI? How many of those potential sources of plastic waste are too contaminated with whatever? How many, like Rock-Tenn's raggertail, have their own specific processing issues?
Everybody is focusing on all the big numbers reported for plastic waste that is not recycled. I contend that this is like focusing on the amount of plastic waste in the Pacific Garbage Patch. There is enough plastic in the PGP to keep JBII busy for years.
And it is basically all not recoverable. It is microscopic, widespread, and would cost too much.
P2O works, but JBI will not be an overnight success.
That doesn't mean there won't be trading opportunities before success. In this case, I am defining 'success' as a business that can realistically sustain a $20-$30 share price. Especially if there is continuing dilution of the shares
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