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

To: James Strauss who wrote (4099)	2/13/1998 4:30:00 PM
From: SFJayhawk	Read Replies (1) \| Respond to of 7006

Views about RECY: I couple of thoughts about the positives and negatives. We have all seen the positives that are on the table, but some of the risk factors I have found are image and scrap prices. The first thing to watch closely is the price of scrap metal. Scrap prices are near historic highs, which is discouraging considering the drop in industry stock prices(MTLM,RECY,somewhat PHV). A decline in scrap prices could impair RECY's margins, thus having an effect on debt payments. A large downturn in price could present some real problems. There has been significant volatility in price over the last 10 years. From talking to people in the industry, it seems as if THEIR view was that RECY is a very aggressive, almost "rogue"-like group of newcomers into the scrap industry. RECY's aggressive nature has included coming up to companies and having the contracts basically made out for the company, prior to serious discussions. Keep in mind that the companies RECY is targeting are mostly made up of "older" owners who are looking to get out of the business. These aggressive tactics can turn some people off. If RECY is able to consolidate their companies effectively and increase margins, respect will follow. My observation are from people who have been in the scrap industry for the last 25 years in the midwest. I am sure that many other opinions exist about this company and I am sure that opinions vary from region to region. I would be interest what the people in the southeast are saying about RECY. Alan