Central European Waste Management, Priargunsky, Xstrata Make Big Gains from Economic Downturn

Online, March 5, 2011 (Newswire.com) - NEW YORK, NY - The continuing global financial downturn has not treated all companies equally. Larger, cash rich enterprises such as mining groups BHP Billiton , Xstrata and mega-recycler Central European Waste Management have leveraged their cash liquidity to acquire or drive out of business smaller companies with less reserves and smaller market shares.

Glencore, BHP Billiton and Xstrata have all scooped up bargain acquisitions at prices and terms unheard of only one year ago. Utilizing reverse integration and banking on the upward spiral of commodity prices to replenish cash reserves, these conglomerates are once again set to drastically outperform the market.

"These guys are amazing," says Europe Business Insider analyst, Marcus Wolfsonn. "All over the globe, businesses are hemorrhaging but these guys are literally swimming in cash, and swallowing-up their competitors in the process. While other companies are running to lenders of last resort, a select few sit and wait and pick up the sweetest of the fruit for bargain prices."

"Like all good businessmen," says Wolfsonn, "[Central European Waste Management's Chairman, Frederick] Von Strasser understands that the name of the game in today's market is liquidity. With commodity prices at near record highs, large stocks and acquisitions can easily be turned into cash, and then once again into acquisitions and again into even larger stocks."

According to the New York Daily News , Central European Waste Management acquired eight recycling plants in Austria, Germany, Italy and the Czech Republic in 2010. Further, the American TV network, C.B.S. (http://www.moneywatch.com) revealed on December 26, 2010 that the company recently invested two-hundred million Euros in base metals.

"There is indeed a recession and a financial crisis in Europe and across much of the globe," said Von Strasser in a recent interview with the Asian Monitor. "However consider that only yesterday, in our combined yards across Europe, more than 250 small to medium sized lorries and vans disgorged quantities of non ferrous material from the construction and industry sectors. This is being repeated daily throughout the working week."

"This is a cash business," says Wolfsonn, "and it takes a large cash reserve to survive. To fully exploit the current market one must be cash rich and also able to stockpile and avail oneself of the rising prices. To be under-capitalized in this market is fatal."

Indeed, all sectors of the recycling industry seem to be up due to pressure on raw materials caused by industrial action and weather problems in recent weeks. "The storms in Australia did not affect Europe, but they did drive up the cost of raw materials such as copper, iron ore and coking coal," says Wolfsonn. Industry giants such as Xstrata, BHP Billiton, and Priargunsky have all benefited from the massive upsurge in prices for raw materials.

The worldwide recession has also had the dual effect of clearing the marketplace of middlemen, brokers and those without liquid capital. It has placed the larger and more liquid companies in the enviable position of having more access to stock and a larger share of the marketplace.

Von Strasser further illustrated this point: "The normal shrinkage in the New Year and credit squeeze have meant that local demand has dropped. Having enough liquidity allows us to buy at advantageous terms. There is money to be made in this market but one must be capital rich in order to have access to stock at the right price."

According to Von Strasser, "there is no room in today's market for the weak. Economies of scale and and symbiotic relationships are the order of the day."