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

To: Dave B who wrote (4096)	2/13/1998 10:48:00 AM
From: Bankceo	Read Replies (3) \| Respond to of 7006

THis company is very high risk.Very high reward; even relative to small caps. They are extremely leveraged and must deliver on roughly 2pp improvement in margins for their acquisitions to cover their investment appetite. They are smart. Thinking of junk bonds to fund some of their future acquisitions up to $1Billion will prevent dilution; as long as they are pacing themsevles. $1B in deals when they are only $270MM in annual sales right now. I hope they take two years to do it. However, they will get pricing power as well as expense reductions with these investments.....Looks like a Republic INdsutries in the making. They need to show constant margin improvement on their acquisitions. This is $40 stock in 12-18 months if they execute.....If they dont, it will be $3 by September.