RECY Looking Good... A Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : RECY Looking Good... A

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ariella who wrote (3812)	1/16/1998 3:22:00 PM
From: James Strauss	Read Replies (3) of 7006

Paying For Acquisitions... >>>It appears to me that acquisitions are being paid for by stock. How worried are you all about dilution of your investment? (Judging by the tone of the thread, not much!). ABTX's good point is that its acquisitions have been immediately accretive to earnings. Is that the case here?<<< ************************************************ Ariella: RECY uses stock to pay for its Acquisitions to a lesser degree than other companies... It uses a combination of Bank Financing and Covertible Pfd... If you look at the current Revenue Run Rate of about 250 Million dollars and divide by the 18 Million shares outstanding, you get a Revenue Run Rate per share of $13.88... That's more than twice the current stock price... In other words, the Price/Sales is less than .50 on the expected Revenues... This means that the stock is undervalued, and Mgmt has not diluted the share value... Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next