Back in June, 2012, we initiated coverage on the penny stock of JBI, Inc. (OTC: JBII), a North American fuel company that was being audited by SAIC Energy, Environment & Infrastructure, LLC. The shares of JBII stock popped for a quick 20% gain before retreating but remained on the list of OTC stocks to watch mainly because they had a working revenue model and were getting rid of the ones which were lagging on the bottom line numbers. Despite the “skull & crossbones” displayed next to their ticker, the shares were due for a bounce, one that AimHighProfits VIP members have captured for 112% gains this past week after targeting an entry at 0.70 in December and seeing the “caveat emptor” designation removed after nearly 12 months.
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JBII Stock Chart
Market Cap: 118.56M
Last: 1.32 ▲ 0.03 (2.33%)
Dollar Volume: $272,912
Issued and Outstanding: 89,817,547
14-Day Rel Strength: 70.43%
14-Day Stochastic: 77.33%
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Historically, JBII stock has been a true bull when it gets some momentum behind it, much of which is proof with the 1,997,500 warrants as September 30, 2012 that have an exercise price of $2 to them. Back in November, 2010 when the Company was fine tuning their Plastic2Oil technology, shares rallied from 0.53 for more than 7 months to as high as $4.20 in June, 2011, a better than half year rally that banked almost 700% in big money gains.
The biggest problem which damaged the value JBII stock held was due to the Company’s former CEO, John Bordynuik, who was under investigation after restating the Company’s financial statements for the periods ended September 30, 2009 and December 31, 2009. This was the reason for the “skull and crossbones” the ticker carried next to it for all f 2012 and the main cause for the steep decline in shareholder value.
Despite the history, 2012 was a bit of a volatile year for JBI Inc. They commissioned SAIC Energy, Environment & Infrastructure, LLC to conduct an independent review of the Company’s technology, process and business model in May, 2011. This is not something you do when you’ve got something to hide since SAIC is one of the premier authorities on energy, environment, and infrastructure solutions with customers ranging through every industry including electric and water, oil and gas, chemical, cooperative, federal, and investor owned utilities; transmission operations, refineries, municipals, financial institutions, developers, and federal and state departments and agencies; and heavy, industrial and manufacturing, commercial, automotive, and transportation.
After a leak of the confidential report was addressed publicly by corporate executives back in October, 2012 relating to SAIC’s evaluation report on JBI’s Plastic2Oil technology, shares of JBII stock ended their -50% decline since the June $1.49 high at 0.78 and rallied for a quick 32% gain. Shares then skidded for the remainder of 2012 until finally bottoming out at 0.6401 on December 7. Enter AimHighProfits VIP Alerts.
We reviewed the Q3 filing for JBI and saw that it was clear: Selling, general and administrative expenses need to be controlled better for some bottom line numbers to be reported positively. However, the top line numbers were the impressive portion of the report showing P2O sales increasing to $595,516 for the nine months ended, $221,653 for the three months ended compared to $189,634 and $140,552, respectively, for the same periods in 2011. The business model was working as far as producing a product which could be sold.
As far as JBII stock goes, the chart pattern and volume changes were clear indication that the 0.64 PPS bottom on December 7 was the end of the selling and the beginning of a possible break out worth noting. VIP members of AimHighProfits were alerted in November to watch for the shares to break past the 0.70 level for entry points and, this past week, saw the stock hit as high as $1.49 off positive news flows coming from JBI worth gains of up to 132%.
The Company closed a $4,012,554 in a private placement and the end of 2012 for 1,146,444 shares of JBII Series B Convertible Preferred Stock at $3.50 per share. Each share is convertible into 7 shares of JBII common stock, $0.50 per share, with a mandatory conversion date of June 30, 2014. Furthermore, JBI settled their SEC litigation stemming from the former CEO’s restatement of 2009 financial statements, hence the removal of the “caveat emptor” and return to a bullish pattern.
While the Court has discretion regarding whether, and when, the proposed settlement which requires JBI Inc. and former CEO Bordynuik to pay civil penalties of $150,000 and $110,000, respectively for violating federal securities laws, the proposed settlement, if approved by the Court, would both fully resolve the dispute with the SEC which began in January, 2012 and could send JBII stock even further up the charts and back into the $2 level.
About JBII Stock
JBI, Inc., a leader in the clean energy industry, transforms, by way of their proprietary Plastic2Oil technology, unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur liquid fuels without the need for refinement. Click here to view the SEC filings for JBII.
Last 5 Trading Sessions:
Bottom Line: JBII is back and deserves a good strong hold on the $1 penny stocks list for dips and rips. Gains were historically played off of momentum rallies throughout certain portions of 2012 but can be targeted for a huge break out upon confirmation of the SEC lawsuit settlement pending. Get JBII stock on your watch list.
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