i like it, page-25

ailung

i think you have hit the nail on the head with regards to the recycling division and I have said it before in previous post that they have enormous unused capacity right now which hurts the business until the tons come in to spread the fixed costs.... all I care about right now is when the economy will recover and therefore when these tons will start ramping up!

And JID I can understand if you lost a bit on this stock then one would become despondent as there was a lot of hype (and I say hype for a very good reason) around this stock 18-24 months ago when it was simply not justified. All they had done was bought a stack of companies, most of which were small run privates, and expected them to work and fit in easily to an international scrap company. If you looked at their management team prior to the big SR purchase it didn’t take much to realise they weren’t capable.

I am positive that is why they brought Southern Rocycling as they saw an opportunity to get a company (and management, one particular in Doug Rowe) with experience in running a reasonably sized national scrap company. I had a friend with close links to SR and CMA and I spent considerable time (probably too much) looking at CMA before investing (initially @ .30) and although I wasn’t sure whether they would actually survive this downturn now that they have I am convinced those of us in here for the long run will benefit.

As you say though we all have different investment strategies! :)