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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dave Baker who wrote (2156)	3/25/1998 9:26:00 PM
From: RADAR )))	Read Replies (1) \| Respond to of 29382

Dave in KC: RECY From the filing I found the following statement of RECY's reason for the offering: Use of Proceeds.The net proceeds from the exercise of the Warrants, if any, will be used to complete future acquisitions and for working capital purposes. While there will be some dilution to the value of the stock when the warrants are exercised, most of the warrants are not immediately exercisable. I have read the prospectus very quickly, too quickly to try and post anything but a guess as to the short term effect the warrant/stock issue will have on the price of the stock. RECY still intends to become the largest metals recycle business in the US through it's acquisitions strategy. That does take capital (warrants, stocks and cash) to make such a strategy work. Any capital raised will be used for operations or acquisitions, both of which will add value to the company. The stocks and warrants that are sold will also be used to pay off both long term and short term debt, at a substantial savings to the interest being charged on the loans. I believe the stock/warrant additions to be a necessary and not unexpected event if RECY is to continue down the acquisition trail. All of this is certainly only my opinion. I would appreciate any comments or conclusions from others who have read the prospectus. RADAR

To: Dave Baker who wrote (2156)	3/25/1998 9:38:00 PM
From: RADAR )))	Respond to of 29382

Dave of KC: RECY I wandered over to the RECY thread to see if there were any comments on the prospectus and found the following message posted by James Strauss who appears to have the same opinion that I do. I hope Jim doesn't mind that I have pasted his comments below. I have a great respect for Jim's opinion, especially when it comes to RECY. RADAR <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><> To: stew (4413 ) From: James Strauss Wednesday, Mar 25 1998 12:56PM EST Reply # of 4421 Funding Acquisitions... Stew: Thanks for the Edgar link... Here is the heart of why RECY is using shares in its Acquisition strategy: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The Company's objective is to become one of the largest metals recyclers in North America through targeted acquisitions of independent metals recyclers. The Company seeks to capitalize on the opportunity presented by the growing demand for processed ferrous scrap, the expanding markets created by the rapid proliferation of new EAF operations and the availability of metals recycling facilities. By pursuing a consolidation strategy within the metals recycling industry, the Company believes that it can significantly enhance the competitive position and profitability of the operations that it acquires through improved managerial and financial resources. The Company also believes that geographic diversity will reduce its vulnerability to the dynamics of any particular local or regional market. Furthermore, as EAF capacity and demand for processed ferrous scrap continue to increase, the Company believes that multi-regional and national EAF operators such as Nucor Corporation, Birmingham Steel Corporation and North Star Steel Co. will increasingly rely on suppliers who can provide a dependable quantity and quality of processed scrap as well as a high degree of service. The Company believes that it is the only metals recycler pursuing a consolidation strategy on a national basis and therefore will be in an ideal position to become a preferred supplier to major EAF operators. Jim