Zeev:
From techstocks.com :
Rentech continues to follow its three-pronged business strategy, Mr. Yakobson
reported. First, the corporation intends to continue its original business, which is gas
conversion technology. Second, the corporation intends to make other acquisitions such as that represented by Okon, Inc., which was acquired in March of 1997. Since then Okon and its performance have exceeded the expectations of management. Third, the corporation would like to engage in advanced technology businesses.
Rentech has other targets which meet its criteria for acquisition, Mr. Yakobson
reported. The criteria are that the business have a positive cash flow, be
well-established, have additional potential for growth, have management that is effective and willing to stay in place, and be located within the geographic region so Rentech's management can be in touch with it on a convenient basis. He announced that it is the goal of management to acquire one additional business by the end of the 1998 calendar year.
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Mr. Samuels responded to the question about the profitability of the corporation. He
said that the strategy of the corporation which it adopted two years ago is unfolding as
expected. In the near term, he expects that the corporation will be able to achieve
another acquisition which would make the corporation profitable. He said that the
criteria by which Rentech was evaluating potential acquisitions included requirements
that advanced technology businesses must have an anticipated positive cash flow within
3 to 5 years and that other types of acquisitions must have a shorter expectation for
reaching profitability. Mr. Samuels reported that three possible acquisitions meeting the
corporation's standards have been identified. All of them meet Rentech's goals of
profitability, stability and positive cash flow.
FWIW,
Eric |
