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

To: Charliss who wrote (9401)	9/26/1998 7:59:00 PM
From: TickerHound	Read Replies (2) \| Respond to of 14347

>>>What if there is an announcement of a deal with TX, say before the Oct 7 conference....isn't it possible that the most that might come from that in terms of the stock price could be a figure upwards of an additional $1 per share?<<< Hi Charliss, The value of RNTK is better illustrated in a market cap comparison with SYNM (Syntroleum). As you know, SYNM has negotiated a contract with TX, as well as, other oil companies. We also know that SYNM has yet to build a plant and there are pros and cons on whether their technology works. That's another debate! The market caps for both companies after a RTNK/TX agreement should be relatively close. Currently, SYNM's and RNTK's market cap's are $278.4 million and $35.3 million, respectively. Applying SYNM's market cap to RNTK result's in a share price of $7.88. Factoring in recent dilution reduces this to about $7.00. Without any future deals (after TX), RNTK's share price should be at least $5-7. In terms of price expectation after an announcement. IMO, I would expect to see $2-3, then some selling followed by an increase in share price to the $5-7 level. We also have to anticipate an acquisition, as well as, future GTL contracts. IMO, RNTK is both a short and long term play. Ticker

To: Charliss who wrote (9401)	9/26/1998 8:16:00 PM
From: ChrisJP	Respond to of 14347

Hi Charliss, The answer to your question depends on the announced terms of the deal. Will RNTK get an advance payment as part of the deal (oh my gosh, earnings ?) ? Or is the deal only a royalty for barrels of oil that won't be produced until 1999 or later ? Either way, I hope we find out soon ! Chris

To: Charliss who wrote (9401)	9/26/1998 8:55:00 PM
From: CYBERKEN	Read Replies (1) \| Respond to of 14347

Char We've been over this a number of times on the thread, but it gets forgotten because it doesn't fit certain poster's desired image of us as "sheep" and "cheerleaders": It's possible that the deal could do nothing at all for the stock price. The only advantage to an announcement of a RNTK/TX deal with no details is that it confirms for us that Rentech's technology is valid and marketable, i.e, that this company won't disappear or have to dilute itself out of existence. Beyond that it's all about the terms, and the less Rentech can disclose, the less short-term benefit there will be for stockholders. This will HAVE to be like a biotech deal or it will fail. By that I mean there will HAVE to be an up-front cash paymnent to Rentech (although that can be a sale of stock at a premium to TX) and enough milestone payments to get us through development to royalty generation. Also, there must be "insurance" against TX just grabbing the technology to sit on for 10 years. Such terms must eventually become public sooner or later (the sooner the better) because Yak must quickly prove to us that he didn't give away the store just to get Rentech's name on a sheet of paper. Investors who are long here don't just believe there's a deal, they believe it's an immediately-lucrative deal for Rentech. If that turns out to be wrong it will be SELL time!