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

To: Ariella who wrote (3812)	1/16/1998 9:12:00 AM
From: Sandra	Read Replies (2) \| Respond to of 7006

Ariella, I was hoping that someone more knowledgable would answer your reply but I will give it my best. I am here for the long term and have been building my position with that thought in mind. I do feel that the management at Recy is one of the best, and the numbers being 1 billion for 1998 proves they are going to be growing strong. I feel that RECY has come along way in the last 6 months, and we will start benefitting from their growth in the quarters to come. True, it is not an "abtx" as yet, but given time, Recy will be there! For the Qtr EPS were (0.01) vs (0.19) last year... For the year EPS were 0.04 vs (0.29) last year... This proves that the Acquisitions are accretive to earnings... The next group of acquisitions to be merged in should further improve RECY's earnings picture... Sandra

To: Ariella who wrote (3812)	1/16/1998 3:22:00 PM
From: James Strauss	Read Replies (3) \| Respond to 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