Dear fellow investor,
Resource Exchange of America Corporation (OTCBB: RXAC), a Florida-based recycling powerhouse, has received quite the tailwind from U.S. news in the past two weeks. Particularly two news stories will help shoot this company's shares sky-high.
Let me explain:
Last week's highly anticipated report from California-based Global Industry Analysts (GIA) showed that while the scrap steel industry was hammered by the global economic meltdown in 2008 and 2009, scrap steel consumption is forecasted to bounce back to 631.5 million metric tons by 2015. This is partly due to improving automobile sales and a recovery of the building industry, but also to continued demand from Brazil, India and China.
And just the week before, the slow but sure recovery of the building industry could be foreseen as the US Census Bureau revealed that home sales in the USA were showing a whopping 5.2 % increase!
To Resource Exchange of America Corporation (OTCBB: RXAC), this is extremely positive news. While several competitors within the recycling industry have been weeded out in the past couple of years, RXAC have positioned themselves to draw the full benefit of the anticipated cyclical return of higher and more sustainable prices on scrap metal. At the moment, the price for scrap iron is up from its all-time low of $190 pr. metric ton to just below $400. Although that is still below the all-time high of more than $800, the present price for scrap iron is actually higher than the rolling 5-year average.
Resource Exchange of America Corporation (OTCBB: RXAC) did the smart thing during the steel industry downturn, and instead of running for the exit, they put their expansion plans on fast track. They bought tons of steel at discount prices, and for the past year they have been biding their time, waiting for the prices to get back up. Now, they are sitting on a veritable goldmine, and they can sell that steel at more than twice as much! And as both the GIA report and the US Census figures show, demand for steel will rise further over the next five years - and so will prices.
I foresee a steady stream of eye-opening news coming from this company in the next few weeks, and as we all know, that can quickly be converted into mouth-watering share value gains.
Do your due diligence, and follow this company closely - and add a nice chunk of shares to your portfolio while you're at it, if you want to be in on this steamroller of gold!
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