RXAC has become active out of nowhere which could mean this may be an early stage of a rally!
View Chart: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=rxac&sid=0&o_symb=rxac&freq=7&time=3
Make sure it's on your watch list!
RXAC is working to become a recycling powerhouse!
Who doesn't recycle today? It's a crime against our planet to not recycle things that can be re-used.
The demand for recycled metal is extremely cyclical.
This can be considered a great advantage because the patterns of these cycles can be observed and predicted from available statistics regarding supply and demand of scrap metal for the past two centuries.
At the moment, demand is lower in the USA, but it is significant in Brazil, Russia, India, China and Korea.
As the economy improves, demand in the USA will rise again, which will lead to higher rates on the domestic market!
RXAC could be a monster when this happens!
RXAC has identified, for acquisition, a number of asset recovery companies, processing and sorting yards, and scrap metal brokers.
This year RXAC will bring many of these types of companies together, making a recycling powerhouse controlling all stages of the value chain!
There are significant advantages to controlling the entire value chain including increased revenue, profits, and recyclability.
Here's an explanation of how RXAC's business works:
The asset recovery companies owned and operated by RXAC will deliver raw scrap metal and other recyclables to their processing centers, as will the general public and feeder yards.
Then RXAC's processing yards will sort and process the scrap metal.
RXAC's sales teams will then sell and distribute the sorted metals to buyers domestic and abroad.
The American scrap industry is a $30 billion industry, and has a great potential for acquisitions and roll-ups at this time.
RXAC wants to benefit from the timing of this opportunity to ensure exponential growth and profits!
The top 50 companies control about 40% of the market, and the other 60% of the market is divided among approximately 8,000 other companies.
By controlling the entire value chain, RXAC will be well positioned for exponential growth in a business that is otherwise very conservative!
Last week RXAC announced its membership with the Institute of Scrap Recycling Industries Inc. ("ISRI").
This is the leading association in the industry!
Institute of Scrap Recycling Industries Inc. is a non-profit trade association that is the "voice of the recycling industry."
Based in Washington D.C., they represent more than 1,600 private and public companies that process, broker and industrially consume scrap commodities.
The membership recognizes RXAC's professional standing in the scrap recycling industry and enables RXAC to access ISRI's vast array of resources and services.
RXAC CEO Dana Pekas commented, "Resource Exchange of America Corporation is excited about joining the leading association in the scrap recycling industry. An ISRI membership will provide us with valuable networking opportunities, as well as important products and services. We intend to use their resources to help achieve our goal of strong growth in the recycling industry."
RXAC announced this April that it has become an approved vendor to Gerdau AmeriSteel for ferrous scrap metal.
Gerdau Ameristeel is the fourth largest overall steel company in North America!
The company has the capacity to manufacture over 12 million tons of mill-finished steel products annually!
RXAC CEO Dana Pekas commented, "We are very pleased to have been approved as a vendor to Gerdau Ameristeel. We very much look forward to providing Gerdau Ameristeel with ferrous scrap metal in the years to come. Having become an approved vendor to Gerdau Ameristeel clearly shows that our strategy of consolidation in the recycling business is working."
The scrap metal market is very fragmented, compartmentalized and disorganized.
RXAC realizes the need for consolidation in the recycling business and sees this as a huge opportunity!
Controlling the entire value chain from asset recovery through processing and sorting and on to sales is essential to provide better service to end customers.
Customers will need to utilize only ONE supplier to get a wider range of scrap metal at the right price.
The recycling nindustry processes about 75 million tons of ferrous metals and 10 million tons of nonferrous metals.
Ferrous and nonferrous metals account for 60% of the entire recycling industry!
RXAC is focused on bringing together the best companies within the recycling industry and elevate them to excellence, drawing on the strengths of the individual companies while combining forces to achieve synergies and be able to tackle the biggest jobs.
More information on RXAC can be found at their website: http://www.resource-exchange.com/
Always do your own research and consult with your own financial professional.
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