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

To: DutchDT who wrote (1682)	3/8/1998 12:04:00 PM
From: dennis reed	Read Replies (2) \| Respond to of 14347

Dear Mark, Thanks for the excellent post on RNTK. First I'm not an expert, so like you, i'm looking for other points of view.However, my take after reading pages 8 and 18 of the S-3 is that I am dubious about a co. that can dilute our holdings at the will of the board including positional rights on co. assets in the event of a failure.It is obvious that the mgt. team doesn't consider my money invested thru the market to earn equalivant consideration while new(old) money gets: 1- a first position on assets 2- the ability to buy stock(2 mil shares) this spring at 1.00/share in price 3- warrants (2.2mil shares of stock) that may be exercised at a 17.5% discount to the mkt 4- warrants to buy stock (8.8 mil shares) that may be exercised at the discretion of the co. and the preferred holders also at a 17.5% discount to the mkt. 5- these guys are also guaranteed 9% interest on the base. At today's mkt. price of $ 1.50 , these preferred owners- having invested $ 2mil- would make PROFIT of 1mil on the stock and 600,000 on the warrants.If the co. decides to make the 2nd warrants available this would provide an additional 2.3 mil profit.As stockholders you and I are taking largely the same risk going forward as these" new" investors but our potential return is much less. Are these guys needing cash this bad or does mgt. intend to hurt stockholder value by ongoing dilutions and special deals. I have not contacted the mgt. to seek answers to these questions but I will do that tomorrow. In the meantime, if anyone has some insight into whats going on with mgt. I'd really appreciate some feedback.I have a substantial position and I'm a little concerned!! What am I missing here?????? best dennis reed