Opinions
Greg Newman
Waste Management
WM-N
DON'T BUY
Oct 04, 2023
Stock price when the opinion was issued
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Premium contentWaste Management is north america's leading provider of integrated environmental solutions. we partner with our customers and communities to manage and reduce waste from collection to disposal while recovering valuable resources and creating clean, renewable energy. we are on a quest for environmental performance, a mission to maximize resource value, while minimizing – and even eliminating – environmental impact so that both our economy and our environment can thrive. waste management tailors its services to meet the needs of each customer group and to ensure consistent, superior service at the local level. headquartered in houston, the company serves nearly 20 million municipal, commercial, industrial, and residential customers through a network of 367 collection operations, 355 transfer stations, 273 active landfill disposal sites, 16 waste-to-energy plants, 104 recycling plants, and 111 beneficial-use landfill gas projects. Social media mentions are up 1400% in the past 24h.
Likes the environmental space so much they launched Canada's first Global Biodiversity Fund, comprised of about 40 stocks. These stocks are focused on halting and reversing nature loss and restoring ecosystems. Companies like WSP, WM, and CLH will benefit from massive tailwinds driven by conservation targets.
Not all the picks can be exciting names ;) In a portfolio, it's important to have some lower beta, more defensive names (especially when mid-late cycle). Leader. Industry has high barriers to entry, which is important to him. Only a few major competitors in the environmental space in NA. (He also owns WCN.)
Supported by secular trends such as urbanization, population growth, and more regulatory focus on sustainable waste solutions. Steady 10-12% growth rate. Yield is 1.41%.
Quite defensive. Last quarter, WM cited lower costs and favourable pricing trends. 9% growth rate, but 23x. With all the carnage on the side of the highway, you don't need to be paying this much. Look in other areas.