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

To: James Strauss who wrote (4244)	3/4/1998 4:19:00 PM
From: Bankceo	Read Replies (1) \| Respond to of 7006

Jim: Margins are improving. However, debt is about 70% of assets in the last quarter; and this is after they retired a huge amount. So you have have interest expense of over $2MM for the quarter and a charge of $2.4MM for retirement of debt. In my eyes, you need to add the two to realize how big a burden they have. If interest rates go up, they are in trouble; unless I see $2MM in cost savings each quarter to cover the interest expense increases.....I am long on the stock; but there is a reason why the stock is $6. Next quarter, they will need to show marked improvement. The lost $.16 a share bottom line last quarter. They did a good job to get us to focus on EBITD and $1B sex appeal. This is a $3 stock or $20 this time next year. I perceive the odds as about equal. Good enough for me to take a long position.