JBI, Inc. (OTC: JBII) is in the business of converting waste plastic into fuel, ever since its founder John Bordynuik "found the solution to a process involving breaking down plastic molecules" while mining through a research archive. The basic science behind pyrolysis is sound, and the concept of reducing waste plastic while recovering useful fuels is certainly appealing. However, I believe that this particular company has little prospect of turning a profit, and that investors should be wary of this ongoing meltdown.

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As of its latest quarterly report for the period ending 9/30/13, the company was down to $2,727,481 in total current assets, with total operating expenses of $3,121,045 in that quarter. SG&A had increased