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

To: Bradpalm1 who wrote (3701)	4/11/1998 2:17:00 PM
From: Gerald L. Kerr	Read Replies (1) \| Respond to of 14347

>>Could anybody comment on their investment strategy once this stock becomes marginable above $5?<< Having once nearly incinerated my portfolio with a heavily margined position in a "sure thing that was bound to make me rich", I don't hold heavily margined positions overnight and over weekends. I do use margin in my account as collateral for short-term trades...especially day-trades. But in those cases I'm right here watching my realtime quote screen like a hawk. My strategy only, Gerry

To: Bradpalm1 who wrote (3701)	4/11/1998 6:16:00 PM
From: SC Anderson	Read Replies (3) \| Respond to of 14347

Brad, When RNTK went thru $2 I put a spreadsheet model together simulating further growth in order to determine how I could maximize returns. (I've done one for TAVA and DDSI as well.) Without getting into a lot of detail I found that at each new dollar level e.g. $3, $4, $5, etc., that if I purchased additional shares using 50% of my new "paper profits", I would increase my returns by an additional 75% thru an $8 share price, 80% thru $9, 82% thru $10, etc. vs. doing nothing at all. At a higher $ level, it is my intent to sell off enough shares to cover my initial investment plus the cost of these additional purchases. Once done, I'd actually end up with more shares than when I started and have all my cash out. Putting the "profits" to work seems to me to be the same principle as compounding interest. !!!Please note that these percentages/estimates are based on my particular total number of shares and average price per share.!!! And before anybody asks, I'd be glad to share the model, but it was done on a MAC using WINGZ. If I can get it converted to EXCEL I'll let you know. Good luck all. Steve