Looks like the buyers are going home.
It doesn't look like RNTK is going to hit a home run today. I am happily filled up and prepared for the future. With the early DOW rally over, and with RNTK drooping, I don't see how RNTK is going to do much more today. I also believe that the day traders are out now, so they won't be giving us a run-up. I am betting 90% of my portfolio on RNTK at this time. Except for some game playing in the last week, RNTK lingered in the low $1's for several months, waiting for the deal to be announced. I can't believe that we will linger there much longer AFTER the deal has been announced.
I look at it this way--Before the deal was announced, Rentech, as a company, was little more than a refinery bottom. With the signing of the Texaco deal, the switch has been turned on and the refinery bottom called RNTK has entered the chamber to begin processing. As RNTK moves through the process, it will take some time, and some more heat, but finally RNTK will be converted from a nearly worthless residual, into a lean, clean, and efficient company.
I've held some RNTK since last November, so I am patient. I am also confident that when the details of the deal are released, the long months of negotiating will prove that the end result was worth waiting for. I am sure that other long term buyers are waiting on the details before they jump in. |
