Waste Services , a waste collection company that has about 90,000 commercial and individual customers, reported a strong quarter yesterday but the stock didn’t budge. Cramer can’t seem to figure out why, so he’s asking CEO David Sutherland-Yoest.
The company had good revenue growth yet the earnings didn’t meet the Street’s expectations. Was the bar raised too high?
Sutherland-Yoest said the quarter exceeded internal expectations and he believes that some of the company’s assets aren’t fully understood by the market. Recently, Waste Services announced that it had sold its Texas operations to WCA Waste Corp. while acquiring a Florida transfer station and hauling company in exchange. Sutherland-Yoest said he expected the positive reverberations from that asset swap to be recognized more fully in the next quarter.
Cramer thinks the story is a good one – and he’s mystified as to why WSII isn’t going higher. “Sometimes these stocks just don’t move the way they should,” he said.
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