You’ve probably never considered it, but the scarcity seen during a recession affects even the garbage industry. After all, during boom times we produce tons and tons of waste. But when that feel-good era is over, the trash biz suffers just like everyone else. That’s definitely been the case for Waste Management.
“Now I think things are gradually changing,” Cramer said Monday, “and for the better.”
Analysts, however, don’t necessarily agree. They worry about weaker-than-expected improvements in pricing. Cramer said WM has been rather conservative in its estimates, though, and he thinks the increased volumes of trash as the economy picks up “will more than make up the difference.”
He’s a fan of the 3.5-percent dividend yield, too. And the $650 million WM plans to spend on a stock buyback this year. But you can’t ignore the potential negatives until you at least do some homework. That’s why he invited Waste Management CEO David Steiner to “Mad Money.” Watch the video for the full interview.
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