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Wednesday,
March 18, 2009
(Cont'd from
above)...
As people and
companies feel
poorer, I guess they
buy fewer things
that ultimately
produce less
trash...
At the same time,
the company
increased pricing by
2.8% in 2008, less
than the 3.3%
increase in 2007...
not a great sign,
given that Waste
Management is facing
less competition,
and it's the biggest
dog in the
junkyard...
In February, Waste
Management began a
restructuring
program that
consolidated its
field operations,
realigned corporate
staff, and
eliminated certain
pay increases...
So they've got a
handle on costs. I
want to know if the
long-term story is
still in tact...
The company raised
$800 million in
senior notes, to
repay $500 million,
maturing in May, and
$300 million in its
revolver balance...
It's got a good
yield, 4.6%... It
seems solid. It
seems secure. But I
don't know anymore.
I'm asking everybody
about yields.
I want to know
worry... I want to
worry... Every day,
I've got to start
worrying... I worry
more and more each
day... So let's talk
to
Waste Management (WMI)'s
CEO, David Steiner,
and hear how things
are going...
Mr. Steiner, welcome
back to Mad Money...
▼ ▼
▼ ▼
▼
 Jim's
comments BEFORE the
interview:
Okay... I run
a charitable trust...
I was looking for
more juice, so to
speak... more
economic sensitivity
all day, because the
staples are coming
down... I said, you
know what?... I've
got to listen to
what David Steiner
(CEO of
Waste Management (WMI)
has to say, because
you've got that 4.6%
yield... The volumes
are down. They could
come back...
And the answer is...
Yep. You want to buy
this one. Now, I
can't buy it for
five days. I've got
to wait... to be
able to buy it for
the trust...
But this is the kind
of name I'm looking
for, when I start
selling off the drug
stocks, because I
think things are
better... I'd buy
with David
Steiner... buy, buy,
buy... I think he's
got a handle on
things.
[verbatim recap]
[end of segment]
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