Clean Harbors gains on report of potential interest from Waste Management

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• Clean Harbors (NYSE:CLH) rose 4% amid a report that Waste Management (NYSE:WM) is said to be "looking" at the company.
• Buyer interest in Clean Harbors is said to have increased after Republic Services (NYSE:RSG) agreed to buy US Ecology (NASDAQ:ECOL) for $48/share last month, according to a Dealreporter item, which cited sources familiar.
• A Clean Harbors (CLH) acquisition may enable WM to expand into areas that are viewed by investors as more environmentally friendly, according to the report. CLH has a market cap of $5.4B.
• Republic Services is expected to continue to look for further acquisitions after its planned purchase of US Ecology and will likely look to enter markets where antitrust issues would be low, according to the same Dealreporter story. Stericycle (NASDAQ:SRCL) is viewed as potential target for RSG.
• CLH has short interest of 3.4%.
• Clean Harbors (CLH) is expected to present at a Raymond James conference on Wednesday.

Comments

[user1416]

No thanks.

[Elon beat me with jumper cables]

@user1416 I don't think it will happen but you should take a second look at CLH. They have synergies with WM and having used both in the environmental remediation industry they operate mainly in separate sectors but I would often cost estimate out projects that used both. Just my opinion but CLH is a well run & rising company that could really create a moat for WM. I wouldn't buy it now but if a correction comes for these safety stocks, which I believe it will they will be priced at/or near COVID lows looking at the metrics like EV/EBITDA.

[user1416]

@Elon beat me with jumper cables I'm pretty happy with WM, especially today. I expect WCN to also put up good numbers next week.

[Elon beat me with jumper cables]

@user1416 yup, great ER. CLH is positive, barely on the day probably in sympathy with WM like RSG, as well.

[Ramon_13]

Interesting 🤔