Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel -- Ignore unavailable to you. Want to Upgrade?

To: Michael Dappert who wrote (297)	10/29/1997 11:00:00 PM
From: LesX	Read Replies (1) \| Respond to of 14347

Hate to rain on the parade but what I heard and saw at the conference was significantly different from the consensus. That drop you saw today was my sell of 197,000 shares. I predict RNTK will drop below $1 in the near term and maybe return to $0.10. I was impressed by all the panel experts with the exception of Mr. Yakobson. He was noticably nervous and I believe it was not just the pressure of speaking at Bloomberg. I believe it was because he had nothing significant to add and his company depended on a good showing. The other Panel 2 speakers got as technical as time permitted except for our RNTK CEO. He spoke in hollow generalities not addressing the RNTK technical advantages and why his Fe process is better than the Co process. Yes, he WAS honest about their failures but I don't think it was appropriate to joke about that in front of so many influential people. When he said they built their GTL plant next to a dump that delivered only 1/10 the necessary feed gases (and therefore had to shut it down) that created doubt as to how well they plan - not to mention how well they engineer. That same plant has been disassembled and is now sitting somewhere in India waiting to go into production in early to mid 1999. That's a long time to wait for a LITTLE RNTK revenue. As it turns out other companies have looked at both catalysts and it is only one part of the GTL puzzle. GTL is a 3 step process: Syngas, Slurry, and Wax conversion to liquids. The syngas process makes up 60% of the total cost and that is where the big savings will occur. RNTK PR's speak of Fe having a good purity level (sulphur is the enemy) but RNTK did not address why in this technical discussion. Most notably, the Texaco representative spoke at length of the wonders of Syntroleum and how they have a good win/win relationship. He then glossed over RNTK speaking barely a minute about what RNTK brings to the table. Now here's the clincher: He said RNTK and TX are in negotiations and was uncertain if they would come to an agreement. The way he said it (his inflection) struck me as a grave uncertainty. I don't think TX needs RNTK since so many other companies having good GTL technology. Patents are great but they don't always make you money. I believe Mr. Schopenhauer was right on the money with his postings this past weekend with this exception: the royalties will not be $1/barrel they will be more like $0.35-$0.50 (per Syntroleum). Few Assets. Minimal Sales. Questionable technology. Get out.