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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 8:55:00 PM
From: CYBERKEN  Read Replies (1) of 14347
 
Char

We've been over this a number of times on the thread, but it gets forgotten because it doesn't fit certain poster's desired image of us as "sheep" and "cheerleaders":

It's possible that the deal could do nothing at all for the stock price. The only advantage to an announcement of a RNTK/TX deal with no details is that it confirms for us that Rentech's technology is valid and marketable, i.e, that this company won't disappear or have to dilute itself out of existence. Beyond that it's all about the terms, and the less Rentech can disclose, the less short-term benefit there will be for stockholders. This will HAVE to be like a biotech deal or it will fail. By that I mean there will HAVE to be an up-front cash paymnent to Rentech (although that can be a sale of stock at a premium to TX) and enough milestone payments to get us through development to royalty generation. Also, there must be "insurance" against TX just grabbing the technology to sit on for 10 years. Such terms must eventually become public sooner or later (the sooner the better) because Yak must quickly prove to us that he didn't give away the store just to get Rentech's name on a sheet of paper.

Investors who are long here don't just believe there's a deal, they believe it's an immediately-lucrative deal for Rentech. If that turns out to be wrong it will be SELL time!
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