"We like stocks. And we like a lot of 'em. We focus on broadly diversified investments in undervalued stocks for their long-term appreciation potential," says value investor John Buckingham.

The money manager and editor of The Prudent Speculator explains, "Each month, we suggest a group of stocks that could help serve as a portfolio foundation. Here's a look at three such portfolio 'foundation' stocks: Kraft Foods (KFT), Verizon Communications (VZ) and Waste Management (WM).

Europe, the U.S., and then probably the rest of the developing world, will transition to a low-waste world, and then eventually, to a zero-waste world. And in America, that means good things for Waste Management (WM), which I first wrote about on March 25, 2009 at a price of $25.74.

This winter, WM pushed higher, to about $39, and I obviously still like the shares here.

Waste Management, a promising recycler, has the right business model at the right time. As noted, the percent of businesses and citizens who recycle is likely to continue to rise -- as the value of just about every resource, scrap, and waste product rises, and as communities transition from 'low-waste' to 'no-waste' policies.

If, as calculated, you took advantage of Waste Management's (WM) side-ways action this summer to scoop-up some shares, you made the correct move.

Waste Management, which I first wrote about on March 25, 2009 at a price of $25.74, has pushed higher since, and I obviously still like the shares here.

Waste Management, a promising recycler, has the right business model at the right time. The percent of businesses and citizens who recycle is likely to continue to rise -- as the value of just about every resource, scrap, and waste product rises -- and as communities transition from 'low-waste' to 'no-waste' policies.

"I'm usually advising investors to avoid garbage, but today I'm advising the opposite," says Jack Adamo, adding, "Waste Management (WM), the largest provider of solid waste disposal in the U.S., is my latest recommendation.

The editor of Insiders Plus explains, "The company also has a growing recyclable and waste-to-energy business.

"The two biggest players, itself and Republic Group, have been on a long road of consolidating the industry. There will eventually only be three of four players.

The earnings crunch continues this week, and analysts surveyed by Thomson Reuters are anticipating lots of strong quarterly reports.

For example, year-over-year earnings growth from big oil Chevron (CVX), ConocoPhillips (COP), ExxonMobil (XOM) and Royal Dutch Shell (RDS.A) are expected to be in double digits. The same is true of many other energy and mining concerns reporting this week: Allegheny Technologies (ATI), Alliant Energy (LNT), Arch Coal (ACI), Cliffs Natural Resources (CLF), CMS Energy (CMS), CONSOL Energy (CNX), DPL (DPL), Hess Corp. (HES), Minerals Technologies (MTX), Pioneer Natural Resources (PXD), PPL Corp. (PPL), Southwestern Energy (SWN), Total (TOT), Whiting Petroleum (WLL), Williams Companies (WMB) and Wisconsin Energy (WEC).

Waste Management (WM), first discussed here on March 25, 2009 at a price of $25.74, has seen its shares meander this summer, but just look on that sideways action as an extended opportunity to scoop-up shares of a promising recycler.

Look for Waste Management to post a 2-3% revenue increase in 2010, as higher prices offset modestly lower volume.

The recession hurt WM's results 2009, as the commercial impact of reduced industrial output rippled throughout the U.S. economy. But in the second half of 2010, volume should start to increase again.

"Managing waste is about as far from glamorous as you can get. But it's essential, and offers relatively reliable growth and defensive qualities that should appeal to conservative investors," says growth stock expert Stephen Leeb.

The editor of The Complete Investor explains, "Waste Management (WM) is the largest waste-management operator in the U.S. and Canada, with about a 25 percent market share.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Abercrombie & Fitch Co. (ANF) lower Q4 earnings topped estimates and same-store sales also declined.
• Campbell Soup Co. (CPB) reaffirmed its earnings outlook but lowered its revenue forecast for the full year.
• Daimler AG (DAI) provided guidance for the year that included slashing its dividend, sending shares lower.
• Dell Inc. (DELL) lower Q4 earnings beat estimates by a penny but it didn't offer guidance, sending shares lower.
• Goodyear Tire & Rubber Co. (GT) easily topped Q4 earnings estimates and revenue increased as well.

Waste Management Inc. (WM) shares jumped nearly 4% after the company reported Tuesday that adjusted net income for the fourth quarter came to $257 million, or $0.52 per share, compared with $241.0 million, or $0.49 per share, for the year-ago quarter. Revenue for the fourth quarter totaled $3.0 billion, down from $3.1 billion a year ago. Analysts expected to see $0.48 per share and $2.9 billion.

For the full year, Waste Management posted adjusted earnings per share of $2.00, compared with $2.22 EPS for 2008. Full-year revenue came to $11.8 billion, down from $13.4 billion for 2008. Analysts expected to see $1.96 per share and $11.7 billion.

Analyst initiations:

• Allegheny (NYSE: AYE) was initiated with a buy at Citigroup as attractive at current levels. Target is $33.
• PPL Corp. (NYSE: PPL) was initiated with a buy at Citigroup. Citi believes PPL's earnings power from the Pennsylvania regulated utility market is being underappreciated. Target is $35.
• FirstEnergy (NYSE: FE) was initiated with a Buy at Citigroup who believes the company's current valuation doesn't reflect its transition to full market-based rates in 2011. Target is $56.
• Waste Management (NYSE: WM) coverage resumed with a Neutral at Goldman.
• Exxon (NYSE: XOM) initiated with a Buy at Soleil. Target is $90.
• Vodafone (NYSE: VOD) was initiated with a Buy at ING Group.

Analyst upgrades:

• Citigroup upgraded Capital One (NYSE: COF) to Buy from Hold as it believes the credit cycle is starting to recover for U.S. credit cards and an improving economy will support bank credit stabilization. The firm raised its target on shares to $44 from $28.
• JPMorgan upgraded Morgan Stanley (NYSE: MS) to Overweight from Neutral on valuation and believes the stock market recovery will serve as a catalyst.
• Deutsche Bank upgraded F5 Networks (NASDAQ: FFIV) to Buy from Hold after its channel checks indicated a sooner-than-expected order ramp and stabilizing pricing trends. The firm raised its target on shares to $46 from $39.
• COTT Corp. (NYSE: COT) was upgraded to Buy from Neutral at UBS.
• Blackstone Group (NYSE: BX) was upgraded to Equal Weight from Underweight at Barclays.
• Illinois Tool Works (NYSE: ITW) was upgraded to Conviction Buy from Neutral at Goldman.

Waste Management (NYSE: WMI - option chain) announced its earnings yesterday and dropped almost 5% on the report, but also sneaked in a little tidbit that I find amusing. WMI declared that as of 8/5, it will trade on the NYSE as WM, which until earlier this year designated Washington Mutual. How appropriate that a company that specializes in, um... waste management, has collected this trashed ticker from the curb and will recycle it for its own purposes.

WMI CEO David Steiner did not mention that connection in the company's announcement, instead saying,"From our trucks to our uniforms, the very recognizable WM represents our company and our people. The WM symbol reinforces how customers, communities and shareholders have come to think of us over the past years, and aligns our branding with our stock symbol." I guess that makes sense it you picture a green Waste Management truck or the logo attached to this post, but I imagine the board members considering the change and relishing how apt it would be.

As for the stock itself, yesterday's earnings came in a penny below expectations and guided downwards for the rest of the year, but this business is not going away any time soon. Also, yesterday's stock dip could have been the result of raised expectations, as WMI had been rising steadily for almost all of July. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WMI.

Trillions of dollars have been introduced into the world economy since last July, when I thought it would be interesting to jump in and pick stocks prior to the carnage in the financial sector taking complete hold.

For the past eight months our government has been taking over financial institutions, absorbing debt, lowering interest rates, nationalizing some private companies, investing in others, and rebating taxes through stimulus packages to increase liquidity and spending. The Federal Reserve has essentially dropped the interest to zero.

The government was the last to announce that we are in a recession. Well, duh! However, recession or not the world is still open for business although less of it. Gold is down 30% from it's highs and oil having totally collapsed from $147 a barrel at the time of the original story to the low $30's now.

The original story was Serious Money: Tempting fate with 10 financials -- buying into a pool of financial stocks at a time when these stocks went unloved by all.

Eight of the ten financial stocks I wrote about are down or out at this point. When I last reported, the portfolio was losing 47% but it has sunk to new lows now standing at a loss of 58.56%. This compares to a drop in the S&P 500 of 29% or half the loss.

There are many analysts suggesting that we finally have arrived at the time to invest in financial stocks. Perhaps that is true, but do you invest in the downtrodden or the blue chips?

Eighteen months ago, banks were throwing money around with very little discretion. Now we find that they made a lot of bad loans, took extreme risk and jeopardized the global economy and the well being of hundreds of millions of people.

All this was supported by a simple minded president, corrupt Congress and an over-confident, short sighted investment community maneuvering in and around a sleeping Securities and Exchange Commission.

Having invested in a broad range of real estate assets (as well as stocks), I am feeling the pain like most everyone else. Reduced values, tighter liquidity, and uncertainty rule the market place.

What has me steamed currently is that I think there is more capital in the marketplace than courage! The lack of courage along with a shortage of leadership and wisdom continues to exacerbate a bad situation. I am probably better off than many people having been able to close two loans in the past month. It was not easy. However, after dealing with many financial institutions that are now doing a better job in the review process, I see that they have swung too far to the conservative side.

This is the third in a four part series which I hope gives buyers, sellers, shareholders and dare I say management a platform for discussion.

The most valuable asset eBay (NASDAQ: EBAY) has is PayPal, the dominant internet financial transaction facilitator. When I started imagining what might happen if eBay started auctioning off its parts I envisioned that PayPal would be worth the highest premium.

I think there would be dozens of interested companies that would find it highly advantageous to acquire PayPal.

The reason eBay bought PalPal in the first place was that they had first hand experience trying to compete with it when it was a separate company, and even with its huge base of customers, eBay could not build much traction. As the old saying goes, "if you can't beat them, join them", or in this case buy them.

For starters, all of the major credit card companies would be very interested with MasterCard Inc'A' (NYSE: MA) and Visa (NYSE: V) leading the bidding and beleaguered American Express (NYSE: AXP) trying to find a way too.

Then there are the few prospering banks still left standing that would have to give this potential acquisition strong consideration. Bank of America (NYSE: BAC) which has already bought out Countrywide Financial and will soon add Merrill Lynch (NYSE: MER) would find this a must have. JPMorgan Chase (NYSE: JPM) has added Bear Stearns and Washington Mutual (NYSE: WM) to its group of enterprises and might be best suited to expand the company given its growing resources. Wells Fargo (NYSE: WFC) that recently agreed to acquire Wachovia Corp (NYSE: WB) after staying on the sidelines most of the year might want PayPal, but I do not think it would pay up.