Continue reading Waste Management: Waste little, profit much

Waste Management: Waste little, profit much originally appeared on BloggingStocks on Wed, 11 Nov 2009 17:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported a surprise profit but is expected to return to losses next quarter.
• Coach Inc. (NYSE: COH) profit and revenue were in line with expectations, sending shares lower.
• Corning Inc. (NYSE: GLW) posted better-than-expected earnings but other concerns drove down shares.
• eHealth Inc. (NASDAQ: EHTH) reported solid Q2 numbers but Wall Street was not impressed.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted a smaller-than-expected Q2 loss, sending shares higher.
• JAKKS Pacific Inc. (NASDAQ: JAKK) reported swinging to a Q2 net loss and revenues were flat.

Continue reading Earnings highlights: Coach, Corning, Goodyear, Visa, Waste Management ...

Earnings highlights: Coach, Corning, Goodyear, Visa, Waste Management ... originally appeared on BloggingStocks on Sat, 01 Aug 2009 15:40:00 EST. Please see our terms for use of feeds.

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.

Continue reading Consider Waste Management, if you like making something out of nearly nothing

Consider Waste Management, if you like making something out of nearly nothing originally appeared on BloggingStocks on Wed, 25 Mar 2009 10:30:00 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.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

Founded in 1945 in a garage workshop in southern California, Mattel Inc. (NYSE: MAT) is now the world's biggest toy maker, with a market cap of about $5.2 billion. Number two Hasbro Inc. (NYSE: HAS) has a market cap of about $4.2 billion. Mattel produces from everything Barbie and American Girl, to Hot Wheels, Fisher Price toys, Scrabble, and the Magic 8 Ball, as well as tie-ins with Pixar, the Dark Knight, Harry Potter, and Nickelodeon. However, in 2002 Mattel shut its last factory in the United States, and since then most of its products have been produced in China.

That decision came back to bite Mattel when, beginning in the summer of 2007, it was forced to issue a series of recalls of Chinese-made toys that contained lead paint. The company is still reeling from that PR disaster, which for some reason included an apology from Mattel to the Chinese people. The situation prompted BloggingStocks contributor Tom Barlow a year ago to suggest (tongue in cheek) that Mattel merge with Waste Management Inc. (NYSE: WMI) so that toxic toys could go directly where they belonged, bypassing the middleman (i.e., the children). That would be one way to make over the company, I guess.

As Christmas of 2007 approached, it looked like the worst might be behind Mattel. The year-end numbers were respectable, and some investors were beginning to eye Mattel again. But first quarter 2008 results were disappointing, and by mid year, expectations were very low. The share price has continued to slide since the recalls, reaching a multi-year low recently. While there was a copyright infringement lawsuit settled in Mattel's favor (though they didn't get as much out of it as they wanted), and they are no doubt hoping for the Dark Knight and other tie-in merchandise to help boost what otherwise looks like it could be dismal holiday season for retailers, the newest thing Mattel has to contend with is claims by some parents that one of its dolls secretly promotes Islam, which Mattel denies.

Continue reading Makeover needed: Mattel

Makeover needed: Mattel originally appeared on BloggingStocks on Sat, 25 Oct 2008 09:10:00 EST. Please see our terms for use of feeds.

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

• Advanced Micro Devices Inc. (NYSE: AMD) narrowed its Q3 net loss on rising revenues.
• AMR Corp. (NYSE: AMR) posted a deeper-than-estimated Q3 loss but ordered 42 new planes.
• Citigroup Inc. (NYSE: C) reported its fourth straight quarterly loss on another write-down.
• Coca-Cola Co. (NYSE: KO) posted better-than-expected Q3 results on growth overseas.
• CSX Corp. (NYSE: CSX) reported strong Q3 results on lower fuel prices and cost controls.
• eBay Inc. (NASDAQ: EBAY) topped Q3 expectations but lowered its full-year guidance.
• Gilead Sciences (NASDAQ: GILD) beat expectations, sending shares higher.
• Google Inc. (NASDAQ: GOOG) better-than-expected Q3 results sent shares higher.
• Harley-Davidson Inc. (NYSE: HOG) international growth couldn't overcome disappointing results.
• Hershey Co. (NYSE: HSY) results in Q3 were in line with analysts' expectations.
• IBM (NYSE: IBM) posted strong Q3 results and offered an optimistic outlook.
• Intel Corp. (NASDAQ: INTC) posted strong Q3 results but warned of lower demand in Q4.
• Intuitive Surgical Inc. (NASDAQ: ISRG) strong results easily topped expectations, but shares fell.
• Johnson & Johnson (NYSE: JNJ) posted strong Q3 results and raised its full-year guidance.

Continue reading Earnings highlights: Google, JPMorgan, Coca-Cola, eBay, Intel and others

Earnings highlights: Google, JPMorgan, Coca-Cola, eBay, Intel and others originally appeared on BloggingStocks on Sat, 18 Oct 2008 09:10:00 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.

Continue reading Closing Bell: Hail to the bull! Market moves up!

Closing Bell: Hail to the bull! Market moves up! originally appeared on BloggingStocks on Mon, 13 Oct 2008 16:15:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Futures climb with dollar as oil declines; ADSK, KSS, JWN, ANF, JCP, MBI, ABK, MER ...

Before the bell: Futures climb with dollar as oil declines; ADSK, KSS, JWN, ANF, JCP, MBI, ABK, MER ... originally appeared on BloggingStocks on Fri, 15 Aug 2008 08:18:00 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 Before the bell: WMI, VZ, BRK.A, UPS, GMT, AAPL, Q

Before the bell: WMI, VZ, BRK.A, UPS, GMT, AAPL, Q originally appeared on BloggingStocks on Mon, 11 Aug 2008 07:58:00 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 Inc. (NYSE: WMI) is the biggie in the trash business. But, things may get tougher.

According to a report in the Wall Street Journal [a paid publication], Allied Waste Industries Inc. (NYSE: AW) and Republic Services Inc. (NYSE: RSG) are contemplating a $6.5 billion merger (a stock-for-stock swap). The companies are the second and third largest trash haulers in the U.S., respectively.

Yes, it's not a sexy industry, but it's fairly recession-resistant. There are some pressures, though, such as higher energy prices. But, the industry has been increasing prices to accommodate for this.

And, of course, if Allied and Republic combine operations, that should mean even more pricing power. Actually, the total revenues would be about $9.3 billion or so.

Besides, Allied could use some help. The company's revenues have languished and the debt load is a hefty $6.7 billion.

In Friday's trading, Allied shares were up 7.7% go $15, as investors speculated on a possible deal.

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.

Republic Services and Allied Waste: A $6.5 billion trash deal? originally appeared on BloggingStocks on Sat, 14 Jun 2008 14:40:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies downgraded shares of Lubrizol (NYSE:LZ) to Hold from Buy as they expect persistent raw material cost pressures to limit upside over the next few quarters. The firm lowered their target price to $60 from $65.
  
• Citigroup cut BioMarin (NASDAQ:BMRN) to Hold from Buy after their survey indicated an upside surprise from the Kuvan launch is unlikely. The firm lowered their target price to $37 from $42.
  
• HSBC downgraded shares of Novartis (NYSE:NVS) to Underweight from Neutral following the company's stake in Alcon (NYSE:ACL) as they believe it dilutes the company's return on assets.

• Goldman removed Waste Management (NYSE:WMI) from its Conviction Buy List.
  
• Thomas Weisel downgraded Kinross Gold (NYSE:KGC) to Market Weight from Overweight.
  
• Dreamworks Animation (NYSE:DWA) was lowered at UBS to Sell from Neutral.
  
• JP Morgan downgraded Martha Stewart (NYSE:MSO) to Neutral from Overweight.

Analyst downgrades: LZ, BMRN and NVS originally appeared on BloggingStocks on Thu, 12 Jun 2008 11:21:00 EST. Please see our terms for use of feeds.

Continue reading Waste Management says it's a dirty job, but someone has to do it

Waste Management says it's a dirty job, but someone has to do it originally appeared on BloggingStocks on Fri, 29 Feb 2008 17:29:00 EST. Please see our terms for use of feeds.