Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

JBI Inc: (OTCBB:JBII) Todays Small Cap Market Mover


Despite all the doom and gloom from Europe, Small Cap companies never fail to rally on a daily basis. Although it was not as easy to find today, JBI, Inc (OTCBB: JBII) is trading at $2.25, up $.65 or 40% on a strong volume of 92k. In a recent press release, JBI announced the completion of a private placement where 488,779 shares were sold at $4.00 a share raising a total of $1.9 million in capital. CEO John Bordynuik, noted that the capital would serve in running day to day operations and support the Plastic2Oil rollout. 

When I was instructed to look into this company I couldn't wrap my head around the plastic to oil concept. But apparently it is possible, using an unnamed chemical catalyst. JBI will be managing multiple Plastic2Oil locations under a licensed revenue sharing model and has already received a letter of intent for 45 joint venture land based sites in Florida and Canada. Should they receive revenue traction the Plastic2Oil initiative could be the company's biggest contributor to top line growth.

On top of this interesting chemical process, JBI is also involved in data recovery and management. The company can recover data on discs, and tapes that have been harmed by magnetic or mechanical errors. Using the "Swahili Engine" normalization of extinct data formats can be read and translated into viable file formats readable by today's computer. 

 
JBII also manufactures a product known as PAK-IT, a green cleaner that is soluble in tap water. Finally, if all of these seemingly unrelated product lines weren't enough, the company also acquired Javaco, a tool line distributor.  Upon review of this company, it is clear that diverse revenue streams are a major piece of the business model. For the year, this company has been steadily sliding, falling from $5.50 in January, But it appears they are attempting to round the corner with this public offering and the change in employee compensation for CEO John Bordynuik. 



Disclosure: no positions