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

To: SEAN007 who wrote (10472)	10/8/1998 10:01:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 14347

Sean, a little, the market typically like to see operational profits or at least profits that have recurrence. Last year Fonar got a very big settlement (more than $100 MM) from GE, and after the initial bump in the price of the stock, the market started to ask, what is next. The question in the case of RNTK is if after this first non recurring bump, they will have an increasing stream of profits. If they get paid per plant installed it is one scenario, if they get paid per barrel of oil produced with their process it quite a different story. In the former case, they will be equivalent to a capital goods company tied to the up and downs of the crude cycle, not particularly a bad situation in view of future world oil demand, but still a degree of cyclicality. In the latter case, they sit a toll booth and collect on each barrel shipped, that can amount to some real money. I have no idea from the news release which form of cooperation is contemplated between them and TX. Zeev