Jim,
I hope that RECY can weather the storm and become a very successful company and make it's investors wealthy as well.
The point I was making with my URL is that both companies are in the waste management field and I do have a little knowledge of that field, albeit, little.
However, the point was not it's price earnings ratio, or book to price, but that they have grown through acquisition, but have also grown earnings. That is the mark of a quality company. For the trailing twelve months their sales were only 126 million and their earnings 4.1 million. This is not EBITDA, this is bottom line profit, after Interest, Taxes, Depreciation, and Amortization. These are dollars that they have to invest in new acquisitions, and retirement of Debt.
I hope that time has not run out for RECY, but if they continue their aggressive acquisitions without corresponding profit, it has, they do not have the cash available to continue losses and service their debt. Something will have to give.
All that I say is not to put down RECY, you are right time will tell who is correct. However, one can learn from other companies in the same field, and the URL I gave was from a company that is in Waste Management, the same field that RECY is engaged in.
I suppose, the real knowledge will come to all of us in December, when we see their audited financial reports.
However, I would be willing to wager you, that they ask for an extension to sometime in January of 1999 to file their Sept 30, 1998 Annual Report.
John |
