Tonight Jim Cramer on CNBC’s MAD MONEY said he loves garbage and waste, because we can’t stop producing waste. His stock in waste management that he first started discussing was in toxic waste: American Ecology (ECOL). But his favorite pick will come second tonight.
American Ecology (ECOL) is one he likes for its hazardous, nuclear, toxic, and environmental waste. The company knows how to exploit toxic waste clean-up into profits. ECOL has only a $326 million market cap, but it closed up 1.8% at $17.97 today. Its 52-week high is $27.91; trades at 21-times past earnings and at 18-times 2007 earnings. Cramer loves the storage business, take-away business, and he loves the government business that they have. Cramer said it is also part of a government sanctioned oligopoly with high barriers to entry because of all the permits that have to be held. Cramer said it’s a defensive growth stock with close to a 4% dividend yield.