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

To: TokyoMex who wrote (370)	11/12/1997 7:06:00 PM
From: Lord Smooth	Respond to of 14347

I don't think I posted my question here. RNTK has indicated that it is negotiating with TX to set up a separate entity where RNTK has an interest and TX has an interest (this from a bloomberg recap of the conference). My assumption is that RNTK will supply the technology and TX the the capital, distribution and marketing. Since I don't know how JV's are set up, and there are many ways, I am wondering how and when the benefits would flow back to RNTK. Hopefully there is a lump cash amount in it for RNTK. I would call myself but I've been pretty busy lately. I think my initial general assumptions of reward / risk still hold. I am holding on to my shares and hope to buy more if RNTK goes lower. Dan Chen's assumption of RNTK value relative to SLHO is correct, something I overlooked earlier. It is amazing that SLHO is at $750 million market cap (assuming 100% interest in Syntroleum) and RNTK is at around $30 million. The difference likely has to do with SLHO's better balance sheet, several licensing and development deals, and perhaps perceptions of cobalt catalyst as better (though RNTK is arguing the opposite). If RNTK can gain strong financial footing and licensing deal via TX, and perhaps better convince Wall Street of iron catalyst pros vs. cobalt, this stock will likely appreciate near SLHO's level. While GRNO and SOLVQ may not be the best examples to compare RNKT and SLHO to (they were mismanaged and delisted, went into or close to bankruptcy) one should note that their market caps went as high as $60 million and $795 million (briefly). By either comparison RNTK is undervalued. What is really interesting is that there are still a relatively large number of instiutional ownership of SOLVQ --->Barclays owns 298,353 shares, Bankers Trust owns 78,100 shares, ANB investment MGM owns 53,400 shares. The point is, Wall Street has seen enough hype for a while. RNTK will have to prove itself in someway before the buyers come flying in. I believe this will occur with a TX JV. Despite arguments against a JV, I think there is a large and vested interest by Wall Street, the Department of Energy and Oil & Gas Companies to see this technology developed. BTW Hitler did use GTL technology and so did South Africa in apartheid times. The technology is not new. It is the economics that is new. We have only recently reached the point where GTL technology is becoming cost effective. Further costs have to be taken out of the technology, however. I don't think anyone here is claiming to be an expert on this technology. Anyone who attended the conference would know that it is very complicated. To learn more about this technology get material from SLHO and RNTK, a 11/96 GTL report from Salomon Brothers, and perhaps the DOE. You can also access a recording of the conference from a Bloomberg Terminal (some airports and business hotels have them). Comments based on a little of this research would be more helpful than blanket statements. Good luck everyone. Schopenhauer