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

To: James Strauss who wrote (4953)	5/15/1998 11:53:00 AM
From: Phil Jacobson	Read Replies (1) \| Respond to of 7006

Jim, You might be right but there's another possible scenario. The other day I called the company for the conf. call number and learned the reason mgmt disappeared was to make additional presentations to the investors who were going to buy the private bonds. It looks to me like the investors saw something they didn't like and either asked for a higher interest rate or decided not to buy until there were better operating results. Just a guess but I think the drop in gross profit pct from 18.7% to 14.9% and the drop in income before tax and extraordinary items from 4.1% to 1.5% was unexpected and made them nervous. Even in well run companies, when you get to a $280M run rate and are managing small units that are geographically distributed, it can require a real change of strategy to get all these companies operating under a set of standards. Standard financial controls, flash reports, etc. become exponentially more important as the company gets bigger. I don't think I'll be able to be on the call, but that's where I'd ask a lot of questions. Phil