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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel
RTK 0.200+5.3%Oct 13 5:00 PM EST

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To: Lawrence Burg who wrote (2128)3/17/1998 11:17:00 AM
From: J.Claudio  Read Replies (1) of 14347
 
"I was too caught up trying to apply/learn TA & forgot FA.

There is so much to consider when taking a position in any stock...TA, FA, hype. Can tell you that some of my worst trades were based on FA alone. Think about it, there are a lot of small companies that have a unique even revolutionary product that can "change the world." Picking the winners is what this game is all about.

The one piece of FA that any investor should be most concerned with is what the insiders are doing with their money. The quality of insider trading (# or insiders buying - # of shares purchased) is everything. Five insiders in RNTK purchased roughly 600,000 shares at .20 back in July 96. This info doesn"t help much now but following these guys will surely make your next trade that much more profitable.

I've been doing TA for last six years and like most things in life the greater the effort ( the more charts you look at) the better you'll become at reading them. In fact I do very little FA on most stocks I buy. Read all the DD thats been done on this stock, now go to SLHO and read the DD thats been done there...good arguments on both sides. To make money its more important to distinguish whether money is flowing into, or out of this stock, and the only way to do this is by looking at the CHART.

I hope this info was a little helpful. Remember when charting - spend more time with the price action on the chart itself and limit all the indicators. Follow the chart in all three formats - monthly, weekly, daily - and try not to get too discouraged initially, your effort will pay off.

J.Claudio
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