As Web's World Turns

[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.

[skiracer]

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.

[Websman]

Thanks for posting that River...That news was a huge red flag.

[Websman]

thank you river. interesting. i can only say this, "RUN FOR THE HILLS".

Agreed Ski...And I did run. Although I could have sold at a much higher price, I still took some very nice profits. My average buy price was well under a dollar. I'm happy that I sold today...I suspect that I will be able to buy JBII at a dollar or less soon.

[skiracer]

thank you river. interesting. i can only say this, "RUN FOR THE HILLS".

[riverbabe]

This is the one about the accountants.

On May 19, 2010 John Bordynuik, President and Chief Executive Officer and Director of JBI, Inc., (the “Company”), concluded that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon due to questions regarding: 1) the accounting treatment and related disclosures of two acquisitions which were completed during 2009 and 2) the valuation of media credits acquired by the Company during 2009 through the issuance of common stock. The Company’s former independent registered public accounting firm Gately and Associates, who was dismissed on May 13, 2010, was informed of the matters disclosed above.

Management is working diligently to correct the errors and file restated financial statements. This restatement will in no way impact the Company's ability to execute its business plan during the 2010 fiscal year. The Company has sufficient cash to complete the P2O factory in Niagara Falls NY and to upgrade the Pak - It facility for retail rollout and to bring the fuel blending site to an operational state

The Company’s newly appointed independent registered public accounting firm of WithumSmith+Brown, PC will review the restated financial statements to be included in the revised Form 10-Q and will audit the financial statements to be included in the revised Form 10-K. Therefore, the above mentioned filings and related financial statements should no longer be relied upon.

[Websman]

NIAGARA FALLS, Ontario, May 21, 2010 (GLOBE NEWSWIRE) -- JBI, Inc. (the "Company") (OTCBB:JBII - News) has completed a private placement. A total of 488,779 shares were sold at $4.00 per share allowing the Company to raise a total of $1,955,116.


JBI CEO John Bordynuik commented, "The money raised in this placement will allow JBI to run all continuing operations and support development of our Plastic2Oil rollout."


About JBI, Inc.


JBI, Inc. is a technology company focused on injecting intelligence into existing products and processes, making them efficient and profitable. JBI seeks to innovate new solutions to issues facing today's world, including environmental concerns. JBI currently has four business lines including JBI's tape data recovery, JAVACO, PAK-IT LLC and our new Plastic2Oil business. Information on our company and all of our products and services can be found at http://www.jbiglobal.com/.


Forward Looking Statements


This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act. The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees as of 1995. Those statements include statements regarding the intent, belief or current expectations of JBI, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

[Websman]

And then we have a new 8K which is actually encouraging...

http://biz.yahoo.com/e/100521/jbii.ob8-k.html

[Websman]

JBII.... Todays 8K explains why JBII changed accountants. This raises concerns for me. I will be watching JBII closely, and will take profits if something doesn't give soon.

[Websman]

Webs,
It sure seems those numbers are possible. When do you think preliminary figures will be in for the first production?

---------billy

The numbers are too big for my redneck brain to comprehend...jejeje...

Seriously...I don't know.

[billyjoe]

Webs,
It sure seems those numbers are possible. When do you think preliminary figures will be in for the first production?

---------billy

[Websman]

Webs,
At 3.40 it's hard to be optimistic. I think JBII's best days are in the past.

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

True, the share price is taking a beating, but the business is still rapidly progressing. I believe things will turn around very quickly when investors see how much revenue P2O produces. Each processor should net about $50,000 per week/$226,720 per month/$1,178,440 per year. This is an extremely conservative estimate as each processor may produce up to 400 bbl per day and not the 109 these estimates are based on.

So, taking a middle of the road number of 200 bbl per day and only 300 operating days = 60,000 bbl per year x $65.00 per bbl = $3,900,000 per processor.

If they plan 6 processors for the NewYork facility that's $23,400,000 for just this 1 site.
90 processors in Florida = $351,000,000

[billyjoe]

Webs,
At 3.40 it's hard to be optimistic. I think JBII's best days are in the past.

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

[Websman]

Webs,
What's with these wild price swings on JBII?

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

It's typical with an OTC stock. That is why JB is wanting to get uplisted.