Jim Cramer says this environmental services and equipment company did three things on Tuesday to unleash significant shareholder value.
The company is Waste Management and Cramer couldn't be more impressed by the day's developments.
First, better than expected quarterly profits. "Although Waste Management missed slightly on the revenue front, management gave guidance in which they said they would either meet or exceed their previous full-year forecasts. That's what really matters," Cramer said.
Second, Waste Management announced a $600 million accelerated buyback program. According to reports, the company anticipates using the full amount of its previously disclosed $600 million authorization on share buybacks over a maximum period of about six months.
Third, Waste Management announced plans to sell its unit, which turns trash into electricity.
"The back end of the business, the electricity sales was not core to our business, explained CEO David Steiner on "Mad Money", "but we'll still supply the waste." After the sale to Energy Capital Partners for $1.94 billion, proceeds will go to fund acquisitions within the core business and a larger buyback.
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It may sound cliché, but given those three developments Waste Management appears to be a case of one man's trash being another man's treasure.
Shares gained 4 percent in a single session and Cramer hates to chase. However, long-term, "The company is unlocking significant value. As far as I'm concerned, this stock is not done."
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