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

To: Brewmeister who wrote (4155)	2/19/1998 10:42:00 PM
From: Duke	Respond to of 7006

Dan -- Yours is the kind of contribution that makes SI worthwhile. Thanks, Duke

To: Brewmeister who wrote (4155)	2/19/1998 11:57:00 PM
From: James Strauss	Respond to of 7006

Steel Imports... Great post Dan!!! The impact from increased Asian Steel imports will be minimal if any for the Scrap and Mini Mill sectors of the U.S. Steel Biz... Any possible effect will be more than offset by RECY's doubling and tripling their Revenue Run Rate in the next 12 months... Jim

To: Brewmeister who wrote (4155)	2/20/1998 12:23:00 AM
From: ed doell	Read Replies (1) \| Respond to of 7006

Dan, Thanks for the effort and quality of your response. I've bookmarked it for reference. Also, I think Grammy had some sound reasoning earlier. In the case of his response, the stock would reflect a good solid company doing a good business, but the stock might not appreciate to the extent expected if a supply of Korean steel materializes. It has been argued elsewhere, IMHO convincingly, that any great supply of Korean steel will be absorbed by the Chinese economy. However, if the Chinese currency catches the flu, that bet is probably.... I agree with Mr. Strauss that the current stock trend is due to market related factors, perhaps warrants or stock being cashed in from somewhere. Low priced stocks are prey to this sort of fluctuation, and especially so on the Naz. Speaking of catching..., this anthrax business, if true, is not cool. You mid-West types can tell us about what they do with cows that get that. FWIW I value this thread a whole lot more now than I did a few months ago...IMHO it has several of the qualities which I argued for back when. Thanks to all, Ed

To: Brewmeister who wrote (4155)	2/20/1998 1:28:00 AM
From: stephen wall	Read Replies (2) \| Respond to of 7006

Dan, Here are several links from Newsteel that may be of interest. 1) Outlook for steel 1998... newsteel.com 2) Outlook for scrap 1998... newsteel.com 3) Steel, auto, and semiconductors turn up heat on South Korea on Capitol hill... newsteel.com I continue to believe that the focus for us should be on what the minimills do and not what we think the scrap industry can do. I believe there will increasingly be a balancing act between scrap,iron carbide substitutes, and imported pig iron costing. I also dont see this as a bad thing. Rather I think the 3 raw material resources will act as a collector valve to stabilize pricing to the minimills over time. The cost of raw materials for the melts of EAF mills are and will remain well below anything the integrated mills can realize and it is in the best interest of the minimill industry for it to remain so(9 new minimills on line this year). As Grammy said, RECY works off of spreads in pricing thus buffering price fluctuations. The real horror for RECY would be a recession. Think of interest rates, mortgage rates, new housing starts,lower energy costs, etc and I think we have a pretty good year ahead of us regardless of South Korea or Europe. Its my understanding that even if steel imports from SEA did substantially increase they will either come to the West Coast or thru the Gulf of Mexico. Shipping and rail costs would still have to be contended with. But I agree with you and these article's main thrust that the fear is greater than the reality,especially with RECY in the southeast. I have every expectation and hope that RECY will become the DELL computer of the recycling industry. Here a question for you. What finished goods do the likes of Nucor and the minimills produce? I know it's on the lower end of the quality spectrum as opposed to the integrated mills but what exactly? And if SEA is exporting here arent they exporting the highest quality they can to get more bang for their buck? I've never seen a good definitive breakdown of end product markets for RECY's customers. Do you know? regards and thanks for your analysis, stephen