Continue reading Waste Management (WMI) will recycle trashed bank ticker

Waste Management (WMI) will recycle trashed bank ticker originally appeared on BloggingStocks on Fri, 31 Jul 2009 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Waste Management knows recycling is a long-term trend

Waste Management knows recycling is a long-term trend originally appeared on BloggingStocks on Wed, 22 Jul 2009 17:20:00 EST. Please see our terms for use of feeds.

"We are selectively taking advantage of deep values such as Waste Management (NTSE: WMI), which is selling at a compelling valuation," says Jim Stack, a safety-first money manager.

In his InvesTech Market Analyst he adds, "Waste Management displays the characteristics we search for in new investments including a distinct competitive advantage and solid financials.

"It is a giant in its industry; Waste Management is the largest solid waste management company in North America. Founded in 1894, it serves nearly 20 million customers.

"With the nation's largest network of landfills, Waste Management has significant pricing power and can charge fees to competitive waste haulers who don't own, or have access to, their own landfills.

Continue reading Waste Management (WMI): 'Deep value' in waste

Waste Management (WMI): 'Deep value' in waste originally appeared on BloggingStocks on Wed, 11 Feb 2009 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: takeovers will resume as long as banks are serious about lending

Cramer on BloggingStocks: takeovers will resume as long as banks are serious about lending originally appeared on BloggingStocks on Wed, 15 Oct 2008 09:15:00 EST. Please see our terms for use of feeds.

Waste Management (NYSE: WMI) really rocketed on Monday. Its shares closed up nearly 18% to a final price of $30.39. Volume was heavy. No doubt the company's preliminary earnings report helped get things going for the company that makes its money off ridding the world of trash.

For the third quarter, Waste Management is forecasting an increase in its top line of 3.6%. It should book revenues of $3.5 billion. For the bottom line, the company should do at least $0.62 per share, which is two pennies above Wall Street estimates. Even better, this represents a 15% improvement over last year's earning's performance. Not bad, I suppose, but was the 18% gain in the stock price truly reflective of an organic breakout? Keep in mind that the Dow rallied almost 1000 points on Monday. That obviously had a lot to do with the fantastic price appreciation. In addition, Tom Taulli covered how Waste Management dropped its bid for competitor Republic Services (NYSE: RSG). As Tom pointed out, Waste Management probably didn't want to rock the boat as far as its credit rating was concerned. So the traders probably also took this into consideration when placing their bids.

But why would I want to buy the stock now after its stellar one-day performance? I'd much rather take a look at the company after it pulls back. I'm just not convinced that all of the action in the stock was due to strong conviction on the part of investors. I'd have to watch how the price behaves over the next few days before making a decision. All of these bounces that we're going to inevitably see after suffering many days of hellish declines in the major indexes are to be approached with caution if you're looking for quick trading gains. Long-term investors can obviously have a different attitude going into certain stocks. In the case of Waste Management, I will give credit for its attractive yield. But you'll need to perform more due diligence beyond the yield to see if this is one you should look at or not.

Disclosure: I don't own any company mentioned; positions can change at any time.

Waste Management: Should you buy the stock? originally appeared on BloggingStocks on Tue, 14 Oct 2008 11:26:00 EST. Please see our terms for use of feeds.

The credit crunch has made it nearly impossible for private equity firms to pull off multi-billion dollar deals. As a result, a variety of strategic buyers have capitalized on the situation.

But, even this trend may falter. Just look at Waste Management Inc.'s (NYSE: WMI) $6.73 billion buyout bid for rival Republic Services Inc. (NYSE: RGS) Well, today Waste Management said it is going to drop the deal.

Why? Of course, it's about the "market conditions."

But, even top companies are having difficulties getting financing. Besides, a big financial commitment could put pressure on Waste Management's credit rating.

Then again, the good news for Waste Management is that the core business continues to be strong. The company forecasts Q3 earning at $0.62 to $0.63 per share. In fact, the recent decline in fuel costs should be a nice boost.

So far in today's trading, the shares of Waste Management are up 6% to $27.29. Republic's shares are up 3.47% to $3.47%.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

Waste Management trashes bid for Republic Services originally appeared on BloggingStocks on Mon, 13 Oct 2008 14:00:00 EST. Please see our terms for use of feeds.

Waste Management's latest Republic bid is too good to pass up originally appeared on BloggingStocks on Mon, 11 Aug 2008 09:43:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Bulls and GSE Bailout Plans succumb to 'Sell, Sell, Sell"

Closing Bell: Bulls and GSE Bailout Plans succumb to 'Sell, Sell, Sell" originally appeared on BloggingStocks on Mon, 14 Jul 2008 16:12:00 EST. Please see our terms for use of feeds.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Waste Management wastes little time in a buyout move for Republic originally appeared on BloggingStocks on Mon, 14 Jul 2008 10:35:00 EST. Please see our terms for use of feeds.

Republic Services (NYSE: RSG) is recently trading at $33.22, above its close of $27.90 Friday.

Waste Management (NYSE: WMI) announced it made a proposal to acquire all of RSG outstanding common stock for $34 per shares in cash. Allied Waste (NYSE: AW) offered to acquire RSG on June 23 for 0.45 shares of AW for each share of RSG.

RSG overall option implied volatility of 31 is near its 26-week average of 30 according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Republic Services volatility flat into WMI's offer originally appeared on BloggingStocks on Mon, 14 Jul 2008 09:50:00 EST. Please see our terms for use of feeds.

"Executives from Waste Management (NYSE: WMI), a stock on our recommended list, presented the company's case to Wall Street at a conference sponsored by J.P. Morgan," says Bill Martin.

In his BullMarket.com newsletter, the advisor explains, "We reviewed the presentation from CEO David Steiner and CFO Robert Simpson and found the company's story to be quite compelling for long-term investors."

"Steiner began by outlining some of the basic drivers of the company's business. Waste Management is the nation's largest trash hauler, and he pointed out that it along with its two-largest competitors own two-thirds of the nation's landfill space.

"The percentage, he said, will only increase over time as municipalities, which for the most part own the remaining third, aren't investing in new capacity the way private industry is.

"Since the biggest cost component is the tipping fees charged by landfills -- it amounts to 40% of total costs -- the more landfill space the company operates, the more it is able to capture those fees from other haulers.

"Landfills also form the basis for the company's initiatives in transforming the methane gas that builds up naturally in landfills into fuel for its trucks. The company plans to invest $70 million this year in efforts to convert landfill gas to fuel.

Continue reading Clean up with Waste Management (WMI)

Clean up with Waste Management (WMI) originally appeared on BloggingStocks on Fri, 20 Jun 2008 09:20:00 EST. Please see our terms for use of feeds.

Waste Management (NYSE: WMI) shares are off 7% today to just over $36. Wall Street was not happy with the company's guidance.

The first bit of bad news was that revenues for the quarter were $3.40 billion as compared with $3.44 billion in the year ago period. Net income for the quarter was $278 million, or $0.54 per diluted share, compared with $300 million, or $0.55 per diluted share, in the prior year period. The company claims that some of its financial problems had to do with labor friction in its California operations.

Waste Management does a lot of hauling from construction sites, so, with building volumes down, revenues were bound to take a shave.

Company executives said that the rest of the year would be a little light. "In looking at our full year 2007 earnings projections, the previously projected range of $2.07 to $2.11 per diluted share included a Section 45K tax credit benefit of $0.04 per diluted share in the second half of the year. We no longer expect to receive that $0.04 per diluted share benefit. After reducing the range by this $0.04 per diluted share non-operational tax item, we are confident we can meet the revised 2007 full-year earnings projection." Which is a fancy way of saying things are worse off than we thought.

Investors would think that there will always be garbage to take out, but a housing slowdown is undermining that, and there would be every reason to believe that the trouble could get worse. The shares are near their 52-week low, and if the construction business gets worse they will be lucky to hold that level.

Douglas A. McIntyre is an editor at 247wallst.com.

Visit AOL Money & Finance for more earnings coverage

Waste Management's (WMI) wasted quarter originally appeared on BloggingStocks on Fri, 26 Oct 2007 13:52:00 EST. Please see our terms for use of feeds.

Natural Gas Vehicles: Cleaner, cheaper and available originally appeared on BloggingStocks on Thu, 05 Jul 2007 15:31:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Credit Suisse initiated shares of Allied Waste Industries Inc (NYSE: AW), Republic Services Inc (NYSE: RSG) and Waste Management Inc (NYSE: WMI) with Outperform ratings and a $16 target, $35 target and $45 target, respectively.
• Bernstein initiated the machinery and capital goods sector, initiating shares of Caterpillar Inc (NYSE: CAT) and Illinois Tool Works Inc (NYSE: ITW) with Outperform ratings and a $100 target and $68 target, respectively and Deere & Company (NYSE: DE), Eaton Corporation (NYSE: ETN), Ingersoll-Rand Company Ltd (NYSE: IR) and Parker-Hannifin Corporation (NYSE: PH) with Market Perform ratings.
• Sandler initiated shares of Preferred Bank Los Angeles CA (NASDAQ: PFBC) and UCBH Holdings, Inc (NASDAQ: UCBH) with Buy ratings and shares of Cathay General Bancorp (NASDAQ: CATY) and East West Bancorp, Inc (NASDAQ: EWBC) with Hold ratings.

• Golfsmith International Holdings Inc (NASDAQ: GOLF) was initiated at Wedbush with a Buy rating and $8.75 target, as the firm believes the company is an attractive growth story and buyout candidate.
• Pharmasset Inc (NASDAQ: VRUS) was initiated with a Buy rating and $12 target at Banc of America, as the firm believes Clevudine has the potential to be best in class for the treatment of the hepatitis B virus.
• Ciena Corporation (NASDAQ: CIEN) was initiated with an Outperform rating and $40 target at Piper Jaffray.

Analyst initiations 6-06-07: AW, RSG and WMI originally appeared on BloggingStocks on Wed, 06 Jun 2007 10:35:00 EST. Please see our terms for use of feeds.