Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mahatmabenfoo who wrote (6155)	12/3/1998 12:45:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 7006

Charles: Good questions... Scrap metal sold to the mini mills can used to make a variety of steel products... The whole steel sector is depressed due to deflationary pressures related to steel dumping from Asia... We know that until the scrap prices improve, RECY and other companies will be looking for ways to lower their cost structure... As they do this, it gives them a chance to survive during this low in their cycle... It also sets them up for expanded profits as scrap prices improve because of their lowered operational cost structure... So, from a long term perspective this will benefit RECY because it forced them to concentrate on improving their cost structure a year ahead of schedule.... All down cycles usually have a blowoff panic double bottom... I believe that RECY will dip to the 1.00 or lower area again on big volume... This will be the bottom that launches RECY again... Why do I believe this? It's a pattern that repeats itself in the market over and over again... I think we'll see this happen with RECY in the next 3 months... After that, all the bad news would have been factored into the price of the stock... The selling would be over because those holding the stock are there for the turnaround... There'll be little room for disappointment... In fact, the surprises will most likely be to the upside... Jim