Colin Stewart Waste Connections Inc. WCN-N COMMENT Jun 08, 2016

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.

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.

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.