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

To: James Strauss who wrote (6150)	12/2/1998 1:05:00 PM
From: ed doell	Read Replies (1) \| Respond to of 7006

>>Some of the best buying oppty's come when it looks like the end of the world... October 8th comes to mind for the general market... RECY is probably very close to its October 8th...<< ***** I agree. And I also agree that, if you think this company is sound, that the risk of losing much money, if any, at this level is very low. If the company is sound, a buy under $1 has very low risk. It's like buying a LEAP without the decay. However, how long might it bump around the 1- 1 5/8 range before moving up to its previous levels? The turn around in the general market, as you note above, happened in a very brief time. I cannot see a shock in the steel market making the commodity so scarce that in 6 weeks or so the price would return to $6 or better. In a commodity market, such as steel, leading indicators of one type or another will signal a turn around. Meanwhile the great supply of steel out there being pumped out by the far east will still be working its way through the system. My point: no rush, no hurry. Keep an eye on RECY and the sector. Buy when and if the turn around in supply occurs. And remember the technicals of this stock. Before moving up, it too will have to deal with some supply issues. Good chatting with you, Ed

To: James Strauss who wrote (6150)	12/3/1998 12:18:00 AM
From: Mahatmabenfoo	Read Replies (1) \| Respond to of 7006

> RECY is probably very close to its October 8th... I hope you're right, but what is your basis for such optimism? What factors affect steel demand and profitabilty? Guessing: DEMAND - construction (is probably high now) - manufacturing (very depressed and getting worse) COSTS - energy for forging (is cheap now) COMPETITION - competitors prices (very law from depression stricten Asia) I suppose a precise answer would require knowledge of particularly how RECY's recyled steel is used -- for sheet metal in cars? for girders in construction? -- and good guesses about whether those markets might improve. And how good is RECY's credit/cash position, which will have a lot to do with how long it can hold on. Are they're any profitable related businesses it can diversify into? I've got nothing but questions, which may not help, but faith isn't a substitute for answers. Course, I could look for some SEC filings by RECY but that would be work... - Charles