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and 1981 for $120,000. Grossman observed that all of these
machines were "widely available".
Grossman's opinion regarding the Sentinel EPE recycler was
based on the descriptions of it in the writings of other
professionals. Grossman neither tested nor examined the Sentinel
EPE recycler.
Grossman reported on the relationship between the plastics
industry and the petrochemical industry. Grossman noted that
although the development of the petrochemical industry is a
contributing factor in the growth of the plastics industry, the
two industries have a "remarkable degree of independence".
Grossman observed that the "oil crisis" in 1973 triggered "dire"
predictions about the future of plastics that had not been
fulfilled in 1981. Grossman stated that the cost of a plastic
product depends, in large part, on technology and the price of
alternative materials. Grossman's studies concluded that a 300-
percent increase in oil prices would result in a 30-40 percent
increase in the cost of plastic.
Finally, Grossman reported that by 1981 the plastics
industry had established that the success and value of any
recycler was to be judged by the properties of the materials it
produced. The private offering memorandum failed to consider the
resulting material properties of the plastics that were recycled
by the operation of the Sentinel EPE recycler. Grossman
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