Two Waste Management Stocks to Consider

American Ecology (ECOL) and Clean Harbors (CLHB) are in the business of waste management. They have contracts with big names such as Honeywell and Tyco International, respectively.

American Ecology Corporation (AEC) provides radioactive, hazardous, Polychlorinated biphenyls (PCB) and industrial waste management services to commercial and government entities, such as refineries and chemical production facilities, manufacturers, electric utilities, steel mills, medical and academic institutions. AEC operates within two segments: Operating Disposal Facilities and Non-Operating Disposal Facilities. The Operating Disposal Facilities accept hazardous and low-level radioactive waste [LLRW] and include AEC's Resource Conservation and Recovery Act of 1976 [RCRA] hazardous waste treatment and disposal facilities in Beatty, Nevada; Grand View, Idaho, and Robstown, Texas, and its LLRW disposal facility in Richland, Washington. The Non-Operating Disposal Facilities segment includes the Company's former disposal facilities in Sheffield, Illinois; Beatty, Nevada, and Bruneau, Idaho and a former hazardous waste processing and deep-well injection operation in Winona, Texas. (E*Trade)

Last quarter, the company's net income was up 20% and set a new high. It has strong margins and a great return on equity. The stock is up almost 50% this year. To top things off, it pays a 2% dividend. I like it at $31.5.



Clean Harbors is much like American Ecology. It is up about 40% since New Year's. CLHB has fairly strong fundamentals but doesn't pay a dividend. In my opinion, it offers a little more short term trading opportunity if that's what your looking for.

I would like to see it come down a tad closer to the trend line before buying in, but it is still attractive as a long term play.

Disclosure: No positions

Comments

[buyitcheap:]

CLHB is a great firm I've known them for years. I would also reco CWST as a microcap waste management/cogeneratio... investment

2008 Aug 22 08:02 AM

[Eric Frantz:]

Thanks I'll have to look into that.

emervest.blogspot.com

2008 Aug 22 08:09 AM