Enterprising Investor Forum

Waste Management Thursday, May 8, 2008

No matter how you look at it, we have to deal with waste. This is a growing concern not only in the States but all over the world: i.e. China, recent problems in Italy, etc..

Waste Management (WMI) is a provider of integrated waste services in North America. Through its subsidiaries the Company provides collection, transfer, recycling, disposal and waste-to-energy services. WMI’s customers include commercial, industrial, municipal and residential customers, other waste management companies, electric utilities and governmental entities.

Waste Management (WMI) has a solid track record and is also innovating in green technologies. The business models is recession proof (essential service) and will continue to provide strong and predictable cash flow.

The stock did get ahead of itself in recent times, also due to the hype around this sector. However, it has recently pulled back and we would recommend to keep an eye on it, especially if it retreats to under 30USD (which would also result in a 3,6% dividend yield).

Interesting Link – Cramer interview with Waste Management CEO: here.

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