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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerEach year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Rentech (ASE: RTK) is the favorite speculative idea from Keith Fitz-Gerald, editor of The Skeptical Investor.
The advisor and money manager explains, "Rentech, a $600 million company, offers a fair shot at decreasing our dependence on foreign oil in a time frame that makes it almost immediately relevant. This is significant because it represents the first widely applicable technology I've seen work at price points that make it practical.
"Rentech, however, has a patented technology that can convert coal to oil, gasoline, or even aviation fuel at a paltry $35 a barrel. Not only is this far cheaper, but with oil now settling in the $50 to $60 range, it's going to be a lot more profitable, too. It's also an area that is being largely ignored, which, of course, makes it appealing to me.
"Most people think coal is dirty, stinky, and causes cancer. And they're right! But, there's also enough of it here in the U.S. to supply our anticipated energy needs for the next 250 years. This makes it more appealing, usable, and even convertible than all other alternative energy sources combined when viewed in the context of our energy continuum.
"Rentech's coal trump card is something called the Rentech CTL Process, which is actually a patented process for converting coal to ultra-clean liquid fuels. The patented part of this is vitally important because the longer oil stays above $50 a barrel, the more intense the interest will be in coal liquification.
"A patent provides important protection for nearly 20 years. RTK is already working with a few major players in the coal-to-liquid fuel industry here in the U.S., and I expect they'll license the technology to China and India.
"What's more, because of the patent protection, the increasing need for more viable energy, and increasingly tough environmental regulations, RTK makes a great buyout candidate. Overall, I consider the stock a compelling buy for risk-oriented investors."
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Reader Comments (Page 1 of 1)
12-31-2006 @ 2:32PM
Rex said...
I just wonder why the other more compelling competitor does not get mentioned here.
WHY?
I personally think that the competitor has a strong edge over RTK.
You know it too.
Have you bought RTK and now try to run it up yet?
Wallstreet rip-off artists, SHAME on you