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

To: TobaccoMan who wrote (3915)	1/30/1998 12:20:00 AM
From: SFJayhawk	Respond to of 7006

Look at PHV...going down hard!!! For those of you who have not noticed, PHV(a main competitor to RECY and a possible acquiror) has lost half of their value in the last week and almost 2/3 of their value since October. The company is taking an $80 million dollar hit from copper exposure(and lack of adequate hedging). The company will be taking a total after-tax restructuring charge of $175-$200 million. The company has announced that they are discontinuing their acquisition program and are now going to concentrate on integrating their new companies and building up their infrastructure. ....This company was using a lot of stock in their acquisitions, thus the reason for their discontinuance of acquisitions. Yes, this is good for RECY, but this also has to be looked at as a great opportunity with another player in the scrap industry. The company is selling at 7x earnings!!!! PHV is also a lot more diversified in their products, thus less exposure during steel downturns. Take a look. ...With PHV's problems, this will take one acquiror out of the race for awhile. Alan