JBI Inc. suffers summertime blues
2010-08-26 11:39 ET - Street Wire
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by Janice Shell
It has been a horrible summer for Canadian stock promoter John Bordynuik and his Niagara Falls, Ont., company, JBI Inc. Following a series of mishaps and promises not delivered, his stock has been demoted to the lowly Pink Sheets and his status as local hero much diminished.
As recently as the beginning of May the company that hopes to turn plastic back into oil looked like a winner, or at least its stock did. The shares were at $5.50 (all figures U.S.), and the 450 shareholders who attended the April 24 annual general meeting were enthusiastic about their leader and impressed by his glowing description of JBI's prospects.
Giddy predictions of $20 a share in the near future ceased abruptly on May 14, when the company announced that its annual report for the year ended Dec. 31, 2009, and the quarterly report for the period ending Sept. 30, 2009, should "no longer be relied upon." In the absence of an accurate annual report for 2009, the company was unable to file its 10-Q for the first quarter of 2010 with the Securities and Exchange Commission.
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Summertime blues...and then fall blahs?
Sales for the Javeco/Pak-It entities are up a bit for the second three-month period ($3.8 million, compared to $3.57 in the first quarter), but the cost of sales is still at 71 per cent of revenue (it was 102 per cent in the first quarter).
While the "other operating expenses" aren't broken out, they're absolutely horrendous ($2.7 million in the second quarter, and $3.63 million in the first). Some of those costs must be attributable to Javeco/Pak-It, so it looks like the operating divisions are real woofers.
Accounts receivable, at $3.7 million, represent almost the whole second-quarter revenue, which indicates that there is either a major collection problem, a quality-control problem...or have right-of-return sales been booked as revenue? No matter which, the financials indicate that the costs associated with the operating divisions are untenable and the two might need to be flogged off.
What's the value of money-losing entities, especially if they're accompanied by uncollectible receivables and unuseable inventory? And, removing the inventory and receivables (no matter the ageing) wreaks havok with the balance sheet.
Posted by halcrow at 2010-08-26 14:19
Wow, the market really is dead now.....nobody left but the scavengers.
Posted by Algorithmic Bot Trader at 2010-08-26 15:26
Where is Lee Webb? He is perfect for this kind of saga stock.
Posted by goLEEgo at 2010-08-26 23:23
what happened to gerry mooney janice?, did he suffer a heart attack from the recent JBI news. how come no mention of P20 development in russia or slovakia, dont tell me your investigative reporting hasnt discovered that yet, the liason for that development is brian at 985-331-0896 or tabitha at 214-325-9653
Posted by Robbie Nicholas morninglightmountain at 2010-08-28 00:24
Janice, what a garbage piece of crab you wrote here. Your insinuations will be exposed soon (IMHO). And after that: will you be nice and admit you have been twisting facts?
Posted by Peter at 2010-08-29 23:59
Nice article Janice. Keep up the good work. I look forward to reading your articles in the future!!!
Posted by Fire E Lane at 2010-09-01 11:29
Janice, another good piece of work .. lets keep the short going.
thx
Posted by Len M at 2010-09-01 15:10
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