(New York)
We bet that when you read that headline you thought we were using garbage in a metaphoric sense. We weren’t. We are actually taking about waste management stocks, which the market has been ignoring lately. The two biggest US waste haulers, Waste Management and Republic Services, are down almost 4% this month, way behind the market. Analysts have been souring on the stocks too. However, that is odd considering they have been performing well. Perhaps most interestingly, they have a strong long-term catalyst, which is the growth in the recycling business.
FINSUM: We cannot profess to have any expertise in waste hauling, but there are definitely some interesting mixed signals coming through here. Our instinct is there might be a good contrarian bet here.
