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

To: Fred Ragan who wrote (661)	12/15/1997 1:34:00 AM
From: TokyoMex	Read Replies (1) \| Respond to of 14347

Nice find Fred,, People reading Forbes will definitely look at RNTK now. Only thing discouraging will be the fact that RNTK is a penny. Nice thing is that we are indeed a NASD stock , not an otc/BB. If there was a link in that article between RNTK and the GTL as well as the valuation of SLHO, we could have a very nice Christmas indeed. The story is getting out there.. Lets hope for the momentum but also keep the eye on the no news from Houston factor...... More on RNTK future ........ We know RNTKs license from process is buck a bbl. Also an upfront fee of undisclosed amount most likely,, It will take minimum of 5 years from now to for RNTK to start receiving fee from the process. How many producers and refineries in 5 years can RNTK sign up and how much will they produce ? 10 licenses ? 20 ? 30 ? 40 ? 50 ? We know from CEOs comment RNTK will specialise at upto but under 5,000 bbl per day units so far with existing tech, unless story changes. To produce 50,000 bbl per day we need 10 licenses. With that RNTK license fee will come to 18,250,000 per annum at a buck a bbl at 80% gm (I am using 80% since there should ne no real need for major increase on new hires to keep track of the amount of the liquid produced, which will be reported probably on good will basis by the clients) which is $14,600,000 divide by 29 mill shares = .50 eps If we give a multiple of 20 = RNTK will be $10 per share. So based on above, having licenses that will produce 50k bbl in five years RNTK will earn .5 eps and the fair valuation will be ten dollars a share. If 20 licenses then eps is $1 and pe factor at 20 will give RNTK $20 valuation in five years and so on and on ,,,, At 40 license eps will be $2 and share price at $40 again on and on ,, More licenses more earnings.. How many to Texaco alone ? One master license up front fee ? then several unit licenses ? How many will Texaco put up ? We know their Venezuela oil can use it. What about their expansion mentioned in the former USSR satellites and how about Texaco refineries all over the world, how many are there ? Can Texaco alone represent more than 10 ? Is this why the nego is taking so long ? Who else , AGIP ? FINA ? Dutch Shell, Hitachi, Pemex etc,... One master license in every country? Also we should find out the kind of fees SLHO and SASOL is charging. So little info avaliable on both in SI thread.... There must be more to this, in view of billions involved in putting up these plants and logistics costs involved. Is my multiple of 20 pe too conservative ?? Any comments will be appreciated... Thanx again Fred.. Joe