The Long Case for Waste Management

I like Waste Management (WMI). It makes sense as a use for new money, but don't buy now. It's apt to go down like all securities in the current market. Good companies that continue to throw off good cashflow returns go down along with the poor earners. Study WMI, but be patient and buy it later. You will be rewarded.

Waste Management is a great company with a huge moat around its franchise. It is the nation's largest garbage company and now operates as almost a douopoly now that Republic Services (RSG) has acquired Allied Waste. These two companies now control over 40% of the country's waste business. They have the ability to influence prices and I anticipate that they will, to the stockholders advantage.