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

To: dennis reed who wrote (1771)	3/9/1998 11:13:00 AM
From: Lord Smooth	Read Replies (1) \| Respond to of 14347

The S-3 registers shares so that existing shareholders may sell them on the existing market. As for the preferred holders, they have to wait 120 days to convert them. This is not an offering by RNTK. This is not a buyout from TX. Yes, dilution is bad. But the company is using funds to move this company forward. The option is to have 1) a bankrupt company with no share dilution or 2) a going concern with more shares outstanding. Do not be surprised if shares outstanding next year are 50 or even 60 million. However compare this to 100% SLHO market value of around $1.2 billion. We are buying RNKT because of its similarity to SLHO. If RNTK ever gets as far as SLHO in terms of market cap, the stock would be worth $20-24 on 60-50 million shares outstanding. Seems ok to me. Not good. But not bad. If RNTK screws up, we are all going to lose money, no matter how many shares outstanding there are. FYI, interesting article on a NZ Refining's study of a cogeneration plant. Hopefully they'll bring in Rentech in on the consultation study. NEWS STORY FOR TX 340 < SYMBOLS: A.NZR BP CHV FEG MOB RD TX A.FCE A.FLC SC U.BP ... 03/08 NZ Refining/Pipeline -2: Studying (DJ ) Cogeneration Plant >A.NZR Searle also confirmed reports the company has sought a formal feasibility study on options for an electricity cogeneration plant at Marsden Point. He told Dow Jones he expects the report by the middle of 1998, and a decision on whether to proceed to the design stage was likely sometime in the third quarter. If it proceeds, the project will take up to two years. Searle wouldn't comment on costs. The refinery produces fuel-gas as a byproduct. The fuel-gas is currently used to fire its 40-year-old steam boilers. The plant takes around 25 megawatts of electricity from the national grid. A cogeneration project would use the fuel-gas to generate electricity and provide steam. The options the company is considering are either to generate enough electricity to make it self-sufficient, and enough steam partly to replace the boilers; or to use the plant to generate all the steam it requires which would result in electricity generation of more than 60 megawatts. Surplus generation would return to the grid. Searle said as the boilers aged, consideration for their replacement had to come into the feasibility studies although he said the 25 megawatt plant was a 'logical size.' Last week local power company Northpower Ltd. said it had been working with the refinery company on the studies, and is interested in taking surplus power to meet local demand. (END) DOW JONES NEWS 03-08-98 07:26 PM-0- 7 26 PM EST 03-08-98 Good luck people.