Why Rentech (RTK) Stock Is Up Today

NEW YORK (TheStreet) -- Rentech (RTK) shares are up 4% to $2.34 on Monday after announcing a new long term processing agreement between its Chilean subsidiaries and Mitsubishi's Chilean subsidiary that expands its wood chipping capacity and processing services in the country.

Rentech's subsidiary Fulghum Fibres Chile will rebuild its current mill in Concepcion, Chile to increase annual production capacity to 400,000 bone dry metric tonnes (BDMT) from 180,000 BDMT.

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Additionally, the facility will have the capacity to process barkless logs to 100,000 BDMT from 40,000 and will become Fulghum's largest plant in South America.

Rentech manufactures and sells natural gas-based nitrogen fertilizer products and will process the bark produced from the mill and sell it as biomass fuel.

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 increase in stock price during the past year, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."

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One Reason Rentech (RTK) Stock Is Up Today