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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: Andrew H who wrote (7182)8/14/1998 9:09:00 AM
From: Charles T. Russell  Read Replies (1) of 14347
 
How many times have you seen stocks go high on rumor, then lower on the news?

Maybe the case here. Depending upon the wording of the deal, Rentech may not see any money from Texaco for a long time. Or they may see some instant revenue....

Does anyone have any insight into the "parameters" of the deal? Surely someone on this board has the contacts. Is Rentech licensing the technology? What is the exclusivity of the license? When and how will Texaco begin renumerating Rentech for the licensed technology?

Just having a deal won't be enough. The fine print will dictate where the stock goes from here.

I can imagine a scenario where Texaco licenses the technology, doesn't use it because the cost to convert the bottoms isn't covered by energy prices. And Rentech sees no short term cash flows because renumeration is tied to use.... In this case the deal won't mean much and we slide back to .75 or lower
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