Waste Connections Inc. (WCN)

Investors have fallen out of love with it as they become infatuated with high-tech and high-growth. Collecting garbage can't compete with AI ;) Still a great company, well managed. You should average into it.

WCN vs. RSG RSG is one of the largest in US waste management. Likes the sector. Tailwinds from economic growth, a sticky business, gets pricing power each year. Even though more expensive, he likes WCN the best, as it has a better track record, better margins and growth, and could better drive M&A synergies given their best in class practices and margin profiles. Nothing wrong with RSG, but WCN is the best in class name for the next 5 years. Stellar management.

For a 5 year hold? If you believe there is going to be more garbage produced in North America, this one is certainly going to haul its fair share. The slowdown in oil/gas has hurt their business a little, but if the Canadian economy continues to grow, this is a good business to be in. However, it is not cheap.

Recently merged with Progressive Waste Solutions (BIN-T). A very good business, and is seen as one of the more profitable, growthier in that industry. All things are positive, but the caveat is that it is not cheap. Trades at a premium valuation to its peers at about 13X EBITDA. A good one for long-term exposure to the sector.

This is going to be a very interesting company. He is going to accept the shares after the merger. They will be dependent on the domestic economy in the US. They will be able to take out a lot of costs and will end up with a lot lower tax rate (10% lower) because it is a tax inversion.