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Non-Tech : RECY Looking Good... A -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (3687)	1/4/1998 6:21:00 PM
From: Tim Oliver	Read Replies (2) \| Respond to of 7006

Can I take popcorn on the rollercoaster ride? RECY filed an SEC 8K in December on their unprecedented financing. We already know the average interest rate between the sub. notes and the credit facility works out to somewhere around 10% currently. Many RECY investors may not be aware that they also sold 1.67 million shares of common stock in connection to with that placement.....at almost exactly $6 a share to "accredited investors." It's reasonable to me that, in order to get $200 million in financing in December, someone must have at least peeked at RECY's books and knows A LOT more than is generally made public. It makes sense that they not only know what happened in the Sept. quarter that caused a negative operating income, but also know what happened in October and November as well. If "accredited investors", after knowing a lot more than I do, buy 1.67 million shares of RECY (this is not just some hype IPO) at $6, I feel that anything under $6 is a bargain. In fact, it's reasonable to expect that these investors with $10 million of $6 RECY stock in December (now January) expect to make "a little bit" of a profit, don't you?

To: James Strauss who wrote (3687)	1/4/1998 6:21:00 PM
From: majormember	Read Replies (1) \| Respond to of 7006

Jim, Good analogy... When CPU dropped to 6 3/4 because of losses incurred when the former CEO was on a wild expansion drive. He opened too many stores, too fast and with increased retail compitition coming from Computer City and Micro Warehouse, profit margins were squeezed to the bone. It took the Board to fire him and put the current, more sober Mr. Alpern at the helm. Mr. Alpern slowed down the growth, and initiated better inventory controls and centralized distribution of product to stores. Of course, COMP USA had very high visibility, being the premier distributor of computer products at the retail and corporate levels through a direct sales team. Also, CompUsa sells products people, (including Wall St.), that exite people. I found it interesting that after CPU opened their first N.Y.C. store, the price began going up... Unfortunatly, RECY does not have the same exiting product CPU does, and therefore may take a while longer to be noticed.....Hmmmm Unless they open up shop in N.Y.C., perhaps near Wall St. Regards, Skane