Why Rentech (RTK) Stock Is Up Today

NEW YORK (TheStreet) -- Rentech (RTK) was gaining 8.1% to $2.33 Friday after acquiring New England Wood Pellet for $34.5 million in cash.

New England Wood Pellet is the largest producer of wood pellets for the U.S. heating market. The companysupplies wood pellets for major retailers such as Home Depot HD, Lowe's LOW, Tractor Supply TSCO, and Wal-Mart WMT.

Rentech said the acquisition is "immediately accretive" to its wood fibre processing business.

"The acquisition brings additional cash flows and profitability to our wood fibre business. In addition, NEWP's business broadens our product offerings, customer base and geographic markets," Rentech preside and CEO D. Hunt Ramsbottom said in a press release.

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TheStreet Ratings team rates RENTECH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate RENTECH INC (RTK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and generally higher debt management risk."

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One Reason Rentech (RTK) Stock Is Up Today