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Waste Connections Inc. Message Board

  • floatmor floatmor Feb 5, 2002 12:48 PM Flag

    burning out

    Dear Ron, I was so excited about my first posting yesterday, that I completely missed my report on prior year earnings, and growth. LTM Sept revenue is a lacluster 5% over Dec 31, 2000 revenue (an annualized 7% rate). During this period, WCNX grew its EBITDA By 6.84% and Net income by 8% (an 11% annualized rate). Earnings Per Share (the only thing that matters to shareholders) only grew by 3.31% (a 4.4% annualized rate). I think you'd better tell the PR department to take back what they've written about the fourth quarter, because $104m in revenue isn't going to close the gap. You've got to show real growth in income to support real growth in share price. Lesson: How do you keep a high stock price? By increasing earnings to keep up with share issuance. If you want the share price to move twenty percent, you'd better get the earnings up by more than 10% (and you aught not to issue a 10% dilution on top of it all). You've already got a 10% dilution on the shelf...and more waiting at $38. Affirm $20-$25 range.

    I want fantasy Ronnie, not sad facts that you will repeat an already lacluster year!

 
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