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

To: Mahatmabenfoo who wrote (6122)	11/24/1998 8:34:00 AM
From: Brewmeister	Read Replies (1) \| Respond to of 7006

INteresting to compare paper with steel, copper scrap. Paper, in a sense, is a renewable since trees can be planted grown, etc. I believe it also got expensive recycling paper, but am no expert. Steel, copper, aluminum, are all finite resources that, over time, become more scarce. Many of the newest and most efficient mills are desinged around scrap and aremore competitive than mills using raw materials. Low scrap prices help these mills compete, so they will not go away. Nor will the demand for scrap fade. Steel is finding its way into more products, house framing for example, so demand should continue to rise, even if slowly. RECY manages scrapr cost and price to provide continued margin, even if compressed. Eventually, they will increase margins and become more efficient, with or without Asia. A turnaround in the developing economies is perhaps 2 to 3 years away and even then, it will be more moderate. These countries won't make the same mistake twice. If Recy can manage through this now, they should be stellar in the future. Of course, all IMHO. Dan

To: Mahatmabenfoo who wrote (6122)	11/24/1998 9:26:00 AM
From: James Strauss	Read Replies (1) \| Respond to of 7006

Charles: Thanks for your knowledgeable insights... You know the industry better than most of us... While it's possible that the deflationary cycle continues, I think it's more likely that this cycle will come to an end as do all cycles... At times like this sometimes you need to take a leap of faith... I believe that RECY Mgmt can weather the storm, and have a leaner/meaner RECY to take advantage of an environment of once again rising scrap prices... But just in case the deflationary cycle continues, RECY would have to lay off more people and close down some of its plants until such time that scrap prices recover... The U.S. needs steel regardless of what scrap prices cost... So, RECY will still be a player in the scrap biz under a deflationary scenario... It's even possible that RECY could lose its National listing under this scenario... If so, it goes to the small cap listings until the scrap prices recover... Right now we're in the middle of the forest... It's hard to see the whole scenario unfolding... All cycles have a beginning and an end... This deflationary cycle will end... We'll know it when we begin to see scrap prices improving... Jim