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Non-Tech : RECY Looking Good... A

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To: Braddock Bull who wrote (5217)7/1/1998 1:30:00 PM
From: James Strauss  Read Replies (4) of 7006
 
A Conversation With RECY...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
**Acquisition program on track...

**Jeffries & Company reiterated Strong Buy...

**12.00 Price target in next 12 months...

**.95 EPS est in year 2000... Hmmm .95 x a P/E of 20
= 19.00 : >

**New Public Relations firm FRB [Financial Relations
Board]...

**They are aware of stock price, and are working towards
increasing investor awareness in the company...

**Here's a simple valuation model for RECY...

1. RECY pays about 5 times EBITDA for its Acquisitions...

2. RECY's EBITDA % of Revenues is 11%...

3. 11% of 800 Million Revenue Run Rate this year
(Could be a Billion) = 88 Million EBITDA...

4. 88 Million EBITDA / 25 Million shares = 3.52 per
share EBITDA...

5. 3.52 x 5 = 17.60 Estimated takeover price per share...

Jim
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