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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: Micropicker who wrote (10611)10/9/1998 10:10:00 AM
From: Zeev Hed  Read Replies (1) of 14347
 
Micropicker, you may very well be right and yesterday's announcement is the turning point for RNTK. I follow some floorless exactly because they provide such unusual opportunity at the "end game". I did that two years ago in AKSEF for a triple, and last year for GATE for a five bagger. I have not followed RNTK close enough to assess the long term impact on its finance of the TX agreement, and if it stops in its track the floorless issue (namely, RNTK no longer issue the preferred from this point on), then you may have just witnessed the end game. In the case of GATE, for instance, I felt that the end game did not provide sufficient resources to execute the business model and bailed out (luckily, since now GATE is at 1/10 of the price where I bailed out and 1/2 the price of my entry during the end game). It is time to put a pencil to a piece of paper, see what burn rate RNTK should expect and the timing of cash injection from the TX deal and see if they need additional access to the preferred or not. If they still need to access the preferred , the initial enthusiasm of the next few days will fade and the general bear market will take its toll on the stock. If they need not access this instrument anymore, you might have a winner alright.

In general, however, I think that the stock will behave somewhat like a junior P&E until there is visibility of future cash flows, and thus you may want to watch what crude is doing and where it is trending.

Zeev
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