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

To: Phil Jacobson who wrote (4085)	2/12/1998 6:46:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 7006

Some Questions... >>>In your opinion, why did the stock tank during 1996?<<< Earnings were negative... There may have been some doubt as to whether RECY could profitably pursue its Acquisition strategy at that time... ******************************************************************* >>>How would you characterize the acquisitions that RECY is completing? I saw a note on Baseline that three buyers account for nearly 50% of company revenues. Ferrous scrap accounts for more than 65% of net sales. Will the acquisitions diversify the risks of this heavy dependence on specific buyers and ferrous scrap?<<< RECY is trying to focus its energy on upgrading profitability scrap metal content targets... Last Qtr Gross Profit jumped from 12.2% to 15.9%. RECY Mgmt is concentrating on Margin management... All Acquisition targets must show the ability to quickly blend in with RECY operational procedures... ******************************************************************* >>>Are you concerned about the level of long term debt that is accumulating due to the acquisitions...ie, do you see any risk of falling operating margins that are needed to pay the debt service?<<< No... When Revenues are growing 191% and EBIDA is growing, the money should be available to fund the debt and new growth... RECY has handled its debt so well that it retired debt early in 1997... Last Qtr showed rising operating margins (8.0% vs .9%)... So, RECY Mgmt knows what it's doing... ********************************************************************* >>>From your other posts I've come to respect your opinion. Hope you can help. If the fundamentals are in place I agree this stock looks ready to pop to the mid teens, at least.<<< Thanks Phil... Jim