RECY.....NOW 5 15/16......Volume: 931,900
NEW YORK -(Dow Jones)- Recycling Industries Inc. expects to announce several acquisitions in the next several months, its chairman said Tuesday.
Investors' anticipation of these announcements may be a factor in the continued strength in the company's stock price.
Chairman and President Thomas J. Weins told Dow Jones Recycling Industries is "methodically implementing its business plan of acquiring good, solid companies and the market is responding positively."
Weins said he hoped the acquisitions would be accretive to earnings.
Based in Englewood, Colo., Recycling Industries is one of the companies leading the rapid consolidation of the metals-recycling market.
In fact, an acquisition announcement may have ignited the recent strength in the stock. On Sept. 4, Recycling said it signed a letter of intent to buy Jacobson Metals Co., based near Norfolk, Va. Recycling Industries said the deal will be immediately accretive and boost its annual revenue to $120 million.
Two weeks ago Recycling Industries also said it would buy the assets of Grossman Brothers Co. and Milwaukee Metal Briquetting Co., which would boost its revenue run rate to about $135 million.
In a move that further bolsters Recycling's acquisition program, the company named Luke F. Botica vice chairman of the board. Botica, who once served as senior vice president of Allied Waste Industries Inc. (AWIN), a solid-waste company, brings consolidation experience to the table.
Since Sept. 4, when it closed at $2.75 Recycling Industries shares (RECY) have soared almost 150%. The stock, after rising 14.5% Monday, gained 25 cents to $5.938 Tuesday on Nasdaq volume of 931,900 shares. Daily volume in the stock averages 247,700.
Weins also said Recycling Industries management has been "methodically" telling its story to fund managers over the last few months. "We've seen a lot of interest," he said.
Recycling Industries' fiscal year ends this month. Weins described the company's existing business as "stable" and projected revenue of $60 million for the year, well above $27.6 million in fiscal 1996.
Copyright (c) 1997 Dow Jones & Company, Inc.
All Rights Reserved.
Transmitted: 9/23/97 9:43 PM EDT (L100YuLJ) |
