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

To: melinda abplanalp who wrote (10721)	10/10/1998 10:31:00 AM
From: ChrisJP	Read Replies (1) \| Respond to of 14347

Hi Melinda, Typically, conversion appears as much higher than average volume (5 - 10 times !) with relatively little change in share price. In fact, if you look at the recent RNTK conversions, the price actually went up. My theory is that they converted and went long, knowing the deal was imminent. I am not an expert on conversions so they may vary on a case by case basis. I would also like to mention that a lot of RNTK DD was done by people like real_estate_investor (on Yahoo) and others. Their earnings per shares calculations/projections were based on full dilution caused by conversions -- 50M shares. They still had no problem coming up with a share price of $4 - $5 based on Texaco alone ! The conversions would truly be a problem if RNTK began trading at 1/2 or below because the preferred holders would be able to dilute more and more shares per dollar which would in turn bring the share price lower and lower. A death spiral. With the Texaco deal signed, I believe we will see price support at or near $1, thereby limiting the potential damage caused by the conversions. Regards, Chris