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Waste Connections Inc. Message Board

  • watchthedownside watchthedownside Mar 4, 2010 5:47 PM Flag

    2009 ROIC of 6.5% vs. WACC of 7.5%

    good to see the folks at Waste Connections continue to destroy's generally not good when a highly leveraged company (8x debt/free cash flow) continues to earn below its cost of capital year after year after year......this stock is worth no more than $28/share which is its capital per share (and it may be worth a bit less) are better off buying another trash co....look at the Valueline on this thing......the only reason the stock has gone up over the years is because of the ability to leverage up and increase the company's capital base through 8x free cash flow, leverage is fairly well tapped out, as is most of the growth for this company....that is why you are slowly seeing shorts add to their position

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    • They seem to be doing fine now. Understand your point but they are still acquiring and seem to be doing a little better withy margins.

      I like Waste Management and Republic, and they have higher dividends, but I bought Waste Connections instead a month or so ago, since near term growth is easier for them off a lower base, and because they may be a takeover play. Waste Management and Republic can't buy each other I don't believe due to antitrust issues. But I could see one of them buying WCN.

    • what a SPECIAL situation? wcn located in the middle of the GULF disaster, and cleanup is the ONLY PROFIT CENTER.
      have you checked their mississippi operation>?

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