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

To: Sergio H who wrote (6002)	6/15/1998 10:24:00 PM
From: Sal D	Respond to of 29382

Sergio, I have also been looking at Steel Dynamics (STLD) they own and operate a flat-rolled steel mini-mill in Indiana (turning out earnings growth of 25% plus a year). Founded by former executives of mini-mill pioneer Nucor. STLD boasted the highest profitability among all flat-rolled mills in the first nine months of 1997. A processing facility coming on stream later this year could save $35 to $45 a ton on scrap input that currently costs the company $165 a ton.Company management wants to make steel more cheaply than the rest and also more of it. Estimates put there 1.4 million tons of capacity to more than double by the year 2002, and possibly a shift to higher-margin products like galvanized steel to enhance growth. The stock is cheap relative to its potential,if the Company can prove its earnings potential more investors will take notice. Risks are declining steel prices, increasing scrap prices and a flood of cheap Asian imports. sec.yahoo.com sec.yahoo.com They did get downgraded by DLJ on Friday from there recomm. list down to buy. Joe

To: Sergio H who wrote (6002)	6/15/1998 11:31:00 PM
From: James Strauss	Respond to of 29382

Steel Article... Sergio: Thanks for the article... Even though there was some price weakness in the industry RECY manages its margins based on the price it pays for scrap metal... As the environment improves RECY will have healthier margins... Jim