Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dennis P who wrote (5083)	5/27/1998 3:44:00 PM
From: Terry Lyon	Read Replies (1) \| Respond to of 14347

Here is the Yahoo message reposted: Message 4230 of 4242 May 26 1998 9:33PM EDT With the help of several people on this Board, we have generated a spreadsheet that shows a prospective pre tax return on investment of somewhere north of 30% (thirty percent) p.a. to any USA based refinery that invests in Rentech's technology - provided this technology is used to convert refinery bottoms, and provided Syngas is made available to the Rentech plant. This is a superior return by anyone's standards, and particularly in an environment where the dividend on the Dow is running at around 2% (two percent) Rentech's technology is extremely versatile. It can be used to convert any carbon rich waste material to diesel and waxes. As an example, right now, there is a far greater need to clean up the environment than to reclaim refinery bottoms. eg. Throughout Latin America, Africa and Asia only 10% of all human sewage in these areas is processed at all. Try to imagine it. Raw sewage from billions of people is being dumped on the land and into rivers and the sea. The water (including ground water) in these areas is in danger of becoming unfit for human consumption because of high levels of faecal coliforms and high nutrient levels which facilitate outbreaks of toxic algae. In Rio de Janeiro and Sao Paolo in Brazil, authorities are having to dose drinking water with chlorine at significantly higher levels than is desirable, and an important question not being addressed is whether the chlorine will do more damage than the bacteria . In Mexico City, housewives routinely boil all water before using it. In Peru, street vendors sell food to go and wash their hands in the sewage streams in the street gutters. Rentech's technology offers PART of the solution to converting sewage sludge into diesel and waxes, and they are a long way from being able to offer a final solution. However, if Rentech's technology does what is claimed for it, the economics of running a Sewage Treatment Plant have the potential to be turned on its head. The opportunity for reclaiming Refinery Bottoms is huge, but is relatively small potatoes. There are other opportunities also, but I have made my point. The question that is occupying my mind at present is not whether the Texaco deal will come off, but whether the haemorraging of Rentech's cash flow can be stopped. I give Rentech's management full marks for recognising this as their priority issue, but I have been greatly concerned that they could have done significantly better than buy a paint factory - which can do nothing to facilitate the bigger objective of commercialising their GTL technology, and may even detract from it. With Rentech sitting on an untapped line of Preference Equity the company has the opportunity to make acquisitions which will stem the cash outflows, and with two new heavyweight board members, I doubt if they will make the same mistake again. I am hopeful, therefore, that Rentech will not rush out and buy just any businesse because it happens to be cash positive. Bottom line: Rentech has patented technology that can reclaim carbonaceous waste profitably, in areas that have, up to now, not been capable of being economically reclaimed. It's underlying value is therefore far greater than its current share price reflects and, provided the company's cash flows can become positive, this stock represents an exceptional long term investment, regardless of what happens to the stock market as a whole. Cheers, and thanks for all the co-operation. Its time to move on.