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

To: pressboxjr who wrote (1278)	2/20/1998 11:18:00 AM
From: Little Joe	Read Replies (1) \| Respond to of 14347

Andrew: Why can I take it to the bank? Why can't Rntk be another Casmyn. I do not understand the details of this deal, but if it is like Casmyn, it creates an incentive for the Preferred holders to drive the stock lower, thereby diluting the stock and obtaining a greater percentage of the company. While the price of each share they own will be less the percent of company they own is greter. In the end it is not the value of each share that matters, it will be the percent of the company owned. The more attractive this company becomes the more incentive there is to drive the price down and convert your preferred shares and increase your equity in the company. This is exactly what happened to CASMYN. Great stock, great value, but it now appears that the company is effectively controlled by holders of Preferred stock who drove price lower and took control, while the price of an individual share of CASMYN was lower, these people were able to increase the value of their holdings. I ain't the smartest guy in the world but give me a chance to do the same thing and I would surely do what is in my best financial interest. I believe this to be a serious concern and frankly I cannot get a grasp on what the downside could be. I am not suggesting that it is inevitble, but I will say to dismiss the possiblity could be very expensive. Live long and prosper, Little joe