We have all seen historical price charts where the price at one time in the pennies increse to dollars and in hindsight we wonder how do we jump in when it was in the pennies????
|An SI Board Since May 1997|
I came across this company called Rentech (RNTK) which I beleive at the current price of .18cents has a great future potential. Here is why:
First go to Edgar and read their latest (4/97) 10Q. This quarterly reports their December 31, 1996 results - and financially horrible befitting its penny status - loss of major revenue source, hardly any cash, etc... This report also outlines their strategies to improve their fundamentals. One plan is to purchase a company that already has revenue stream as a source of cash for funding RNTK's core business in the oil sector.
Now back to the present, they successfully raised enought $$$$ through private placement to buy the co., have since been awarded the patent crucial to their gast-to-liquids processing, have an agreement with Texaco, etc..... The stock bouced back from around 7 cents to 40cents, probably reponding to the news and now the stock is still at .18cents, probably due to major profit taking.
Most pennystocks i've seen have a float of 50M + shares. RNTK I believe only has 15M shares. The private placement is convertible to 6M shares (at .20 cents!) so the total potential float is less than 25M shares. Most of the options the executives hold are at above the current price. Technology and their products aside, the time now seems to be just right to jump in and ride this stock up.
RNTK is into converting gas to liquids for various industrial products. I am not an expert in this field so check out their web site that desribes this technology gastoliquids.com
They seem to have a solid board of directors. The execs are not grossely overpaid and milking the investors like in many other penny companies I have researched. Do your own research on this company and find out for yourself.