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Microcap & Penny Stocks : EUTRO INVESTMENT GROUP EUTO (LONGS) -- Ignore unavailable to you. Want to Upgrade?

To: BJM who wrote (1212)	1/30/1998 9:20:00 AM
From: Doug Gallian	Read Replies (1) \| Respond to of 1667

THIS TWO THREAD STUFF IS REALLY A HASSLE!!! I posted this on the other thread, sorry for the redundancy! All, To reiterate and continue the dialog on the potential with EUTO, let me tell you about a stock I've been following and trading for close to a year, RNTK. RNTK traded as high as 5.00/share in 1992. Management problems, increasing long-term debt, and extremely low trading volume caused the stock to slide to .125. Volume suddenly increased on news reports of new management, and a potential large contract with Texaco. As interest gained and volume increased the stock started "rolling between 15 and 30 cents. It did this 5 times in the course of time from 5/97 to 9/97. All that time not a word about the "big deal" with Texaco. Then a news release comes out in early Oct. stating that Rentech (RNTK) is still in talks with Texaco about their patented conversion of low-value gases into valuable liquid hydrocarbons. No revenue mind you just potential from Texaco (valued at $5M one time ). THE STOCK PRICE SKYROCKETED!!! In a 2 week period just after the "news" the price went from 31 cents to $2.25! Unfortunately the next day earnings were reported and RNTK had lost $1.3M for the year ending 9/30/97 (revenues were $1.2M and expenses were $2.5M!!!). Loss per share of (11 cents). The price then fell to $1.25, another news report comes out 2 weeks later stating that their applying for more patents on their technology and the price flies back to $2.00 (for 1 day!). Price starts eroding back to its current level of $1.00. No contracts yet with Texaco, and last quarter saw another LOSS. For the last 4 years RNTK has lost money (-.11, -.06, -.36, -.17 EPS per year) yet the stock runs from 30 cents to $2.00 and sets a strong base at $1.00. How can this be? Better yet how can this happen and yet EUTO trades at .05 and has somewhere in the $750K to $1M in revenue last year and pays a dividend (hint: NO OPERATING LOSS). Outstanding share quantity is indeed a factor. The good news and I guess the real point of this lengthy post is: RNTK has 29 Million outstanding shares and a float of 25 Million (imagine if EUTO takes care of the 50M, SUBTLE HINT BRAD!). Their balance sheet and income statement look terrible and their revenue per year is not much more than Eutro's, YET THEY TRADE BETWEEN $1 and $2 !!! Hang in their folks! WE LONGS WILL BE REWARDED! Doug P.S. Heck, RMIL traded at $3.75 recently (11/97) and probably isn't even a company!!!!!!!! Go figure?