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

To: R. Ramesh who wrote (4911)	5/12/1998 7:49:00 PM
From: Bankceo	Read Replies (2) \| Respond to of 7006

Earnings are a terrible disappointment: Revenue grew---so what> Gross Profit Margins were 14.9% vs. 18.7% prior year. Interest Expense as a percent of operating income is 85% of operating earnings vs. 45% last year. I have sold all my holdings....This company is going to get crushed. Target somewhere in the 5s. The company is NOT; I repeat is NOT increasing margins which is the fundamental to make their business model work....And demand for scrap is down as overall commodity and industrial demand is weak...The CEOs loves to cut deals..Fine...But they are buying companys with 20% profit margins and reducing them to 15%........Tomorrow will be a blood bath IMO...Glad I am out of this one....If interest rates go up, this company will generate serious losses.

To: R. Ramesh who wrote (4911)	5/12/1998 10:23:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 7006

Ramesh: Thanks for the Earnings report... Yes... The penny earnings are good in light of all the Acquisition digestion RECY is experiencing... Revenues up over 400%... Big Ebitda increases... The Balance sheet is getting stronger... Current Ratio over 3 to 1... We'll have the Conference Call next week... It wouldn't surprise me if there are some nice announcements during that call... Top Mgmt is out of town this week... I sense something very positive brewing... Jim