As Web's World Turns

[Websman]

Ski I had entertained thoughts about getting back into JBII....but there just seemed to be so many mysteries, and I did not want to lose the profits I had made.
My advice for all those still hanging in there ......bend over grab your ankles and kiss your as* goodbye!
LOL!

I agree...There are too many red flags right now...

[Peter Hansen]

I was serious about getting back in at the $3.50 range before that news item came out about the accounting firm quiting on them. that was a Godsend for me anyway. here's the weekly chart and how i feel. I don't want to pour salt into a wound but this should be a good lesson in taking profits when you have them. you can always reenter a stock at any point after exiting but it's hard to recoup gains once they are lost. knowing you Webs I'm sure there will be plenty of other winners. I'm hoping that they are as big as this one was at some point. you'll be ok. I'm may sound like I'm preaching to you but believe me I've been in the same boat more than once. it takes a situation like this to learn and understand. at least you didnt lose any money. I'm sure you still did well.



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Ski I had entertained thoughts about getting back into JBII....but there just seemed to be so many mysteries, and I did not want to lose the profits I had made.
My advice for all those still hanging in there ......bend over grab your ankles and kiss your as* goodbye!
LOL!

[B.J]

Props, Webs, for getting out on time. Sorry to those who did not.

[skiracer]

I can't complain about my JBII gains, but had I listened to Ski, I could have made more.

Ok Ski...JBII closed at $1.60 today...Where do you think the bottom will be? I'd be interested in hearing your thoughts.

I was serious about getting back in at the $3.50 range before that news item came out about the accounting firm quiting on them. that was a Godsend for me anyway. here's the weekly chart and how i feel. I don't want to pour salt into a wound but this should be a good lesson in taking profits when you have them. you can always reenter a stock at any point after exiting but it's hard to recoup gains once they are lost. knowing you Webs I'm sure there will be plenty of other winners. I'm hoping that they are as big as this one was at some point. you'll be ok. I'm may sound like I'm preaching to you but believe me I've been in the same boat more than once. it takes a situation like this to learn and understand. at least you didnt lose any money. I'm sure you still did well.



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[Websman]

I can't complain about my JBII gains, but had I listened to Ski, I could have made more.

Ok Ski...JBII closed at $1.60 today...Where do you think the bottom will be? I'd be interested in hearing your thoughts.

[skiracer]

welcome back karel. hope you had a very nice vacation. I sold my first trade at $7.05 and the 2nd trade around $7. you must take those gains when you have them. the problem is that most people keep thinking that if they exit then the stock is going to go up further without them but then it drops after everyone else takes their gains and those that didnt realize that they let those gains get away again and have to settle for a loss or a much smaller profit. i've been there and done that a number of times but no more. i learned my lessons. not to be greedy, not to wish in one hand and shit in the other and see which one fills up first, and if your up 200/300/400 % or maybe 2000 or 3000 % you had better be happy and take the bird while it is in your hand.

[billyjoe]

I got lucky. Sold out at 2.65. Before it had been low as 1.50 and now it's 2.00 so my lesson has been learned............again.

----------billy

[Karel]

Oops, that is not nice news after a nice vacation. I just sold my remaining position in JBII for a 30% loss, but my "profit cushion" was big enough for a 35% gain overall. So no tears here.

Regards,

Karel

[Websman]

John has yet to provide an explanation...I would imagine that he is having a very stressful weekend. I'm sure that I'm not the only investor that has lost confidence in John this week, and I'm definitely not the only one that took profits and ran. I also thought that announcing a $180K salary while the stock was dropping was in very poor taste.

Considering that JBII closed near the low of the day on high volume, I would expect the selling to continue next week, until the share price hits a dollar...or even less. The OTC market has a way of punishing CEO's that screw up.

[billyjoe]

River,
JBII and John always took pride in the faith their families and friends took in the business. Surely John would do nothing to jeopardize that trust, yet the private placement of nearly 2 million dollars worth of stock at $4/share to mostly those same family members and officers will probably have lost 50% or more of value by Monday. I'll be reading John's posts on facebook the next few days for his explanation.

------------billy

[riverbabe]

River,
I find it hard to believe that JBII and all its components, if totally legit and ground breaking with a successful P2O strategy, would go down the toilet even with accounting irregularities. Something else is also not kosher.

-----------------billy

Billy, I agree about the "something else." Don't need JB's 170 IQ to use my nose. Please note that he does not identify himself as CEO of JBII in this post. And he omits mention of Pak-It. This is not the first time that the phrase "delusions of grandeur" has crossed my mind, knowing all we know about the company from doing our own DD. But .... it's a soap opera .... and amusing only if one has no stake in it.

But congrats to all who made big money on it. It was a beautiful momentum stock there for a while.

[billyjoe]

River,
I find it hard to believe that JBII and all its components, if totally legit and ground breaking with a successful P2O strategy, would go down the toilet even with accounting irregularities. Something else is also not kosher.

-----------------billy

[riverbabe]

As JB's world turns...

The latest post from JB on InvestorsHub:

Auditor Questions Answered:

When I acquired 310 Holdings Inc, Moore & Associates was the
auditor. Our securities lawyer at the time, Joe Emas, advised us not to
change auditors as the original owners had done so often. We did our DD on
Moore and found them to be basically a "shell" auditor and we would
eventually have to change them. Gately & Associates audited the acquisition
purchase of JBI as it was a straight forward sale. We barcoded every asset
and built a highly detailed asset ledger so that we were prepared to retain
a large firm after we got a couple of acquisitions complete. There was no
point in hiring one of the big 4 at that time and paying several hundred
thousand per year in auditing and quarterly reviews until we were further
along to warrant that. As you'll recall, Moore's left with little notice and
misrepresented why they could now longer audit. Seal's was just as
problematic so we used Gately and Associates to perform the review until we
retain one of the big-4.

We are now interviewing those firms now and looking for a CFO and will
release news soon about our decision. We are proceeding carefully as the CFO
must be a good fit and so must the firm. We are obviously looking in Boston
and need a firm with specialists in Oil, Gas, Technology and M&A. Due to the
pending chemical company acquisition, other acquisitions already in the
queue, the P2O which is proceeding well, and the tape business, it is now
the right time to retain one of the large auditing firms. Things are moving
very quickly -- while it looked like we could use a small auditing firm for
at least a couple of quarters during this transition, retaining a large firm
is a high priority now. I am flying to Boston next week to meet with one.

Regards,

John Bordynuik
CEO
310 Holdings Inc

[Websman]

Great post from Ihub about JBII...



You miss the point. This situation (the restatement coupled with the recent PP), is much more serious than I think people realize. It could mean the end of the company. The shares may not only drop substantially further, they might be worthless.

A CEO is held to a higher standard than that. He cannot say that he simply did not know. In fact, because of his role, he ought to have known. This has come up in recent years with all of the scams and false accounting practices that have been realized.

as an example, look up Nortel. I like to quote it because I am Canadian and hence familiar with it. Nortel was finally dealt with a class action lawsuit directed when Frank Dunn was the CEO back in 2004. I have followed this over the yeaars and do not know the outcome, but I know that the line is crossed when CEO is held personally liable. I know this was threatened with Dunn and with his predecessor, John Roth, who is now comfortably enjoying his retirement up in Ottawa with his fleet of classic cars. In fact, I remember reading about Roth getting some insurancce or something in case he is found personally liable in these proceedings.

In 2004 Nortel, after Roth led the company to failure, tried to come back by cooking the books. Quite blatantly. Inflating sales numbers and moving sales around. The purpose was to get the share price up to where they could try to lower the debt/equity ratio and improve their balance sheet. I remember that I had some shares at the time. I heard the news about restatement and hesitated to sell out of my inexperience.

Anyway, back to JBII. JB has come out and said (FB?) that the share price is beyond his control. It will fluctuate. Well, it fluctuated just fine for him when he negotiated this PP, didn't it? It served to justify a $4 share price for the PP, thereby improving his balance sheet immensely. That is suspicious enough. If he did anything to affect the share price... he is accountable.

But, more importantly, the bottom line is that he knew, or OUGHT TO HAVE KNOWN, that the financials were not to be relied upon. That means he misled those investors That is, legally, misrepresentation. Misrepresentation is the legal word for lying.

I would not be surprised of we hear of lawsuits over this. If I were one of those investors, I would want some of my money back.

As soon as it comes to lawsuits, management is totally distracted and the stock is doomed. and if I am not mistaken, if they don't get their house in order in 30 days they go to the pink sheets.

therefore, this stock could be worthless as of now. This drop could continue much further, below a buck.. and it could be worthless. trading halt, etc, etc.... add to that the fact that JBII is running out of cash...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50472389

[Websman]

I'm not condeming John or the stock but whenever I seen something like this in the past it always turns out to be a scam and this is how the unravelling generally starts. Webs, it was one of the strongest picks I have seen here and I made out bigtime with it. I only wish you would have cashed out when it was at the $7/7.50 level. I'm glad your out. You can always get back in.

It would have been nice to get out at the top, but I did buy very close to the bottom, so I made some very nice profits. I need to start thinking more like you Ski. I have a feeling that JBII will be back to a dollar or less by the end of next week.