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


To: Lord Smooth who wrote (5704)6/24/1998 7:59:00 PM
From: Copeland  Respond to of 14347
 
you value on general similarities.

SLHO: Converts natural gas to diesel

RNTK: Converts gasified refinery products to diesel (major focus)

Similarities:

1. Both produce diesel

That's it. The only means that I can think of by which you can value the two is based purely on the price of diesel.

I'm assuming that the broker report that you're referring to values SLHO using a formula that utilizes but is not completely dependent on diesel prices alone. If that's so, using that same formula to value Rentech wouldn't be all that accurate.

The value of Rentech's F-T unit will come from making a refinery more efficient/productive by recycling these waste streams, coke, etc.
into a fuel that on a site-by-site basis is more profitable than co-generation of electricity; implementation in the processing of heavier crudes through gasification into a marketable fuel (considered more cost-effective than current means of doing so); implementation in the processing of low-quality coals into a marketable fuel (again, through gasification); and implementation in the production of "cleaner burning" (low sulfur content, low particulate producing, zero aromatic) diesel that is most likely to be mandated in the European Community and several US states in the near future.