You know Clean Harbors? It’s the company that cleans up after the BPs of the world when there’s a big oil spill or other drilling disaster. But don’t think this business is contingent on just these kinds of disasters.
A lot of investors assume that because the catalyst that was BP’s Gulf of Mexico spill has passed, the run in this stock—25 percent since Cramer’s June 11, 2010, recommendation—is over. But not so, said the “Mad Money” host. Clean Harbors is the largest hazardous waste disposal player in North America, and that brings solid, consistent revenues on the regular.
Whether its cleaning up after refineries, chemical plants, pulp and paper mills, manufacturing facilities or, yes, those oil and gas fields, CLH stays busy on a daily basis. Cramer also likes the high barriers to entry for this industry, as no new hazardous waste landfills or incinerators have been permitted or built in the U.S. in the last 15 years. And he’s bullish on the revenue visibility that comes from 85 percent to 90 percent of the company’s sales coming from long-term contracts.
So is this stock still a buy? Watch video of Cramer’s interview with CEO Alan McKim to find out.
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