Rentech(RTK) - gas-to-liquids and cleaner fuel Message Board

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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: Rock who wrote (11067)	10/20/1998 9:22:00 AM
From: Larry Voyles	Read Replies (1) of 14347

A RS is a very, very bad thing. In theory, a RS looks great, as it would drive up share price, right? That's not the way it works in practice. If RNTK did a 5-for-1 RS (horrors!), the stock price should go up to $3.75 (5 x $.75), right? Sadly, a RS almost always causes severe erosion in share value, so instead of $3.75, the stock price could end up around $2.00 instead. Maybe it wouldn't be so bad, but then again, it could be worse. One theory (not mine): A forward split increases the float and fuels trading activity, but a RS decreases the float, lowers the volume and makes your shares less liquid, resulting in a drop-off in price.

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