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Strategies & Market Trends : Three Amigos Stock Thread

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To: Magnatizer who wrote (759)2/17/1998 10:33:00 AM
From: James Strauss  Read Replies (2) of 29382
 
Effect Of Acquisitions... RECY...

>>>Do acquisitions generally lower RECY price in the near term? I want to enter but I would like to get in around 6 1/4 or better.<<<
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David:

Acquisitions are generally depressive on the Acquiring company if a material amount of stock is used in the deal... This tends to be dilutive... In RECY's situation, they primarily use financing and other debt in their Acquisitions... As such, RECY stock price has risen during it's Acquisition deals over the past year...

If there is any dip in stock price because of an Acquisition, I would expect it to be brief... Investors are looking forward to the increased Revenues and Earnings these Acquisitions will bring to RECY...

Jim
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