Rentech's Future Turns a Lovely Shade of Green

Rentech's history indicates that it is in the CTL business for the long haul, rather than seeking to exploit anomalies in the energy marketplace or geopolitical sphere.

It may be small now -- its market cap is around $340 million and fiscal 2006 revenue was $44.5 million -- but that could change one day if its processes ultimately become more widely accepted.

And for Rentech to succeed, that will have to happen, because the company has never operated at a profit. Rentech's last 10-K says that from its inception in December 1981 through September 2006, it has accumulated losses of $100.7 million.

Zachs Investment Research recently gave Rentech a stock target price of $2.70 a share and a buy rating. Morningstar assigned the firm a fair value estimate of $2.50 a share. The company was recently trading at $2.02.