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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: Charliss who wrote (9401)9/26/1998 7:59:00 PM
From: TickerHound  Read Replies (2) of 14347
 
>>>What if there is an announcement of a deal with TX, say before the Oct 7 conference....isn't it possible that the most that might come from that in terms of the stock price could be a figure upwards of an additional $1 per share?<<<

Hi Charliss,

The value of RNTK is better illustrated in a market cap comparison with SYNM (Syntroleum). As you know, SYNM has negotiated a contract with TX, as well as, other oil companies. We also know that SYNM has yet to build a plant and there are pros and cons on whether their technology works. That's another debate!

The market caps for both companies after a RTNK/TX agreement should be relatively close. Currently, SYNM's and RNTK's market cap's are $278.4 million and $35.3 million, respectively. Applying SYNM's market cap to RNTK result's in a share price of $7.88. Factoring in recent dilution reduces this to about $7.00. Without any future deals (after TX), RNTK's share price should be at least $5-7.

In terms of price expectation after an announcement. IMO, I would expect to see $2-3, then some selling followed by an increase in share price to the $5-7 level. We also have to anticipate an acquisition, as well as, future GTL contracts. IMO, RNTK is both a short and long term play.

Ticker
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