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Friday, May 12th 2006

'Coal Hearted'

RTK  (RENTECH INC)

"
A couple of weeks ago, U.S. News and World Report (I will read anything) wrote up alternative energy ['The Oil Rush'].  This was a great article, except for one thing.  Like almost all journalism I read, they tell you what works but, unlike Cramer, they don't take the next logical step and tell you how to try to make money off it!

I'm going to fix that.

They talked about how one of the most promising technologies around isn't solar power or wind power.  It's something called 'Fischer-Tropsch' - the 'Fischer-Tropsch' process for turning coal into gas!

You exposure the coal to oxygen, heat it up to 25,000 degrees F. and then, ta-da, the gas gets released, turns to paraffin wax, which can then be refined into diesel fuel or kerosene.

This isn't new technology; it's been around since the '20s.  But it's still the most promising thing we've got.  But, again, like most publications, they don't tell you how to make money off of 'Fischer-Tropsch' ('FT'); they don't tell you how to make off of coal oil.

They do say that the U.S. Energy Administration believes that FT would become economically viable with oil at $45 a barrel.

Okay, we've been above that benchmark for a while.  It turns out, they're right - it is profitable.  But, the million dollar question... Who is it profitable for?...

I want to make coal oil profitable for you!

In the past, I'd recommend Sasol (SSL).  But now, I feel there's a better play.

I don't think you should buy SSL - don't buy, don't buy - even though I think it's a good company.  I've got something better...

I've got a stock called Rentech (RTK)! 

SSL be a lumbering giant - a $32 billion co.  RTK isn't even worth $500 million.  You're early my friends.

The substantive difference - easy to understand.  Small caps.  Very volatile, and that means, when they're good, they tend to go up more!  Small caps have what I guess you could call pin action!

RTK's got their own process, based on 'Fischer-Tropsch' that converts biomass, especially coal into gas, and then from gas into clean-burning liquid fuel.

Let's just call this the 'Sierra Club stock.'  But don't hold that against RTK.  Their process gives you 42% fewer hydrocarbon emissions, and it barely emits any sulfur!

Their process can produce diesel fuel or jet fuel... these are not bad things to be making right now.

RTK should be the first co. to actually attempt doing this in these here United States!

And, in America, in case you didn't know, we are the Saudi Arabia of coal!

If you want energy independence, then America needs to go with coal!  Not that namby-pamby ethanol garbage - no...which I think can still make you money, because politicians are inane and insane, unlike me.

Now look, let's have a little talk about buying RTK... If you really want to know when to buy RTK, wait until Tuesday morning, between 10:30 and 12.  Because Cramer's done a study of when his stocks work the best, and that is a day and a half from after he recommends it.  And, please!  Never be a stock without doing a stitch of homework, which I know some people want to do.

The bottom line!:  You want to try to make money off of turning coal into oil, which you know is the next best bet... that's like turning lead into gold... you'd better buy RTK!

 
"Interview with Steve Sanghi, CEO of MCHP"
MCHP  (MICROCHIP TECHNOLOGY INCORPORATED )

Has the guy on the show and still issues a dont buy!  Gotta love Cramer, always looking out for us.
read the full story!                            

"Fine China"
PTR  (PETROCHINA CO ADS)

A chinese oil company that Jim says is like Black Gold.

read the full story!

"Coal Hearted"
RTK  (RENTECH INC)

A small cap coal company with clean, new energy product.

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"Office Suprise"
BUH  (BUHRMANN NV ADS)

A company that could be bought by Office Depot.

read the full story!