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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: Starduster who wrote (7934)8/26/1998 6:03:00 PM
From: Howard Williams  Read Replies (3) of 14347
 
Sandie, Brett, Bradpalm, et al., especially Brad.....As much as I'd love to see RNTK north of 40 six months from now, I think you're being a "bit" optimistic. My quickee calculations (nothing sophisticated like a spreadsheet) say it'll take two 500 bpd units paying royalties of $1 per barrel to RNTK to generate $0.01/year revenue for RNTK. If all goes well, there may be well over 100 refineries using the units in a few years. Let's say 200 for grins. That's a buck a share for RNTK and, based on multiple discussions, they don't have to add staff to do this (Read: Incredible Margin).

Now, that's just for doing gasified bottoms. If they get the TX "Seal of Approval"......other deals will follow......but I don't think they'll be overnight.

Lest you think I'm negative, I'm not. Just trying to be realistic. The revenue to RNTK should grow and grow and grow (without hardly any increase in operating expenses....heckuva situation). Once they get off the dime and get rolling, it'll be a steady climb that will be relatively easy to predict. If those predictions are super rosy, RNTK's multiple could get to be pretty nice.

So long term....I'm very optimistic. But I don't see 40 in 6 months.
H.W.
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