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

To: David Graham who wrote (4273)	3/6/1998 12:37:00 PM
From: Zeus549	Read Replies (3) \| Respond to of 7006

Grammy, I agree fully from the point of view that they know how to manage their inventory in order to maintain margins within a certain price range. But when someone offhandedly suggests that "it doesn't matter where the price is because they maintain their margins", it upsets the mathematical side of my brain I guess. 10% of fewer dollars equals fewer dollars last time I checked and the converse is true if the market is going the other way.The bottom line for shareholders is total dollars per share. I guess the reason this is bugging me a little is that someone on this thread commented a couple of months ago, as I recall, that they went by a scrap yard that had been acquired by RECY. The comment was (to paraphrase) "that it used to be piled high and deep and now it looked pretty empty". The only way I see that happening is by selling off inventory without making new purchases. Not necessarily a smart move and if you did this throughout your acquisitions it would really distort the books wouldn't it? At some point that inventory is going to have to be replenished. If it's at lower prices,great. If not, then not so great. Might be a good question for Alex i.e. how much inventory, percentage wise, do they currently have on stock at each location vs. how much they had when they first made the purchases. If it has in fact been drawn down, then margins will necessarily be distorted as I see it.