I believe RTK is a great stock to own in the short, medium, and long
term. I see enormous potential for the company and also for the stock
price. I purchased shares at $1.55 and plan on giving it up to 5 years
to let the company grow and give time for the stock to appreciate.
I’ve spent a decent amount of time researching the industry and their
competition.
Here are a few reasons why I am bullish on RTK in the short term: and
some reasons why the stock will go higher imo----
1. After landing that deal with LAX, you can bet RTK will begin to
pick off other airports one after another. LAX is a major airport in a
very eco forward state. Look for many more deals to be announced
between now and the next 12 months. Each announcement the stock should
pop
2. A contract will be announced with the US Air Force. This in my
opinion is the biggest deal they have pending in their pipeline if
they announce a 5, 10, or 15 year contract, the stock will surge. This
contract will truly validate RTK with investors and institutions.
This will be a major victory to anyone holding the stock.
3. Not only will the Air Force sign an agreement with RTK (btw the US
Air Force is the largest purchasers of fuel in the country...look how
many gallons per year!) other branches of the military will follow
suit. I see them going through the same process with the Army, Navy,
Marines, and Coast Guard. It will however be a much faster process
with the other branches because the ground that will exists w / the
Air Force. This will be more great news for the company. Although I
see it being a little ways out, just having it out there as an
opportunity for RTK will put support under the stock.
4. The commercial airline industry (not airports) will all be
potential contracts for RTK. Why wouldn’t they seek to lock in prices
and an agreement to give them some stability with their future fuel
price? Everyone knows the price of oil is going to go up and will
always be volatile. This is a way for the commercial airlines to
really help themselves I believe RTK won’t even need to put much
effort into securing these contracts. Ill bet they are all long term
too...the longer the more beneficial the comm. airline industry.
5. Money from the Dept of Energy. This will 100% happen in the near
future. This will spike the stock too. I’m sure everyone knows that
SilvaGas that RTK acquired was manages by the Dept of Energy who also
invested 100 million dollars into SilvaGas when they started it. I
know for sure that the DoE played a major role in the day to day
managerial operations of that SilvaGas.
6. With all the money that is being printed and flooding the system, I
can guarantee that within a few years we will have a very
inflationary, if not hyper inflation, situation on our hands.
Obviously when that happens oil will skyrocket. If its $70 ish now in
the horrible economy. just wait until thinks to turn around and growth
comes back. We will see $200 oil in no time. Who will benefit? RTK.
Don’t think for one minute that the Military, Government, Airline
industry doesn’t realize this. I can guarantee they are in overdrive
planning now for what they can do when inflation hits. That’s why
these contracts will start rolling on anytime now and over the next
year. If you are a CEO you have every incentive to lock in prices now
why oil is only 70, securing your fuel for as many years as you can.
7. Cap and Trade I’m personally against Cap and Trade. But if the
discussions heat up and if a bill is passed, can you imagine how
beneficial it will be for RTK?. This is the biggest no brainer out
there. It won’t be an option for companies anymore. It will be a
necessity.
8. When America realizes that there are no jobs in this country and
so many people are unemployed and out of work. They will have to do
something. We obviously need to be independent when it comes to our
energy going forward (for so many reasons). But, we also need a new
industry that we will be able to create jobs, develop, manufacture,
and use new technologies. I personally don’t know what other sector
we could rely on to solve these two major problems.
9. Lastly, I want to discuss their chemical business. It’s where they
currently get about 100% of their reportable revenue every quarter.
This was nothing less than genius when they acquired it. I’ve seen so
many companies have technology that could be the greatest thing in the
world, but don’t have the income or cash to support the business as
they develop it and they spend cash (burn rate). Not only that, it’s
a sector that prices will go much much higher when inflation hits.
Think of potash prices when oil was $150. prices were skyrocketing
along with other fertilizer and chemical prices. Stocks in these
sectors were on fire then I remember purchasing POT around $55 a share
and selling when it hit $83. Needless to say, the stock went up to
230ish in a straight line. It was unbelievable to watch and there were
many companies that had enormous moves.
This is the most overlooked and taken for granted part of RTK. When
they get their fuel all squared away and are pumping out barrels. They
could look to sell that part of the business and make a killing off of
it. They could sell it today if they put it on the market.. It’s so
undervalued.
