Tonight Jim Cramer on CNBC’s MAD MONEY said he loves garbage and waste, because we can’t stop producing waste.
His top pick in the sector on November 11 was Stericycle (SRCL) that is up 20% since then, but it is still his favorite. He said they have the medical waste arena and they have been acquiring mom and pop medical waste companies around the US. It is the only national player in medical waste and they are the best capitalized of all the medical waste companies. Cramer likes the long-term contracts in place that keep it from having much earnings risks and the aging population will mean only more medical waste at each facility. It has 20% share in the US and only 7% in international, but the regulation in the sector is keeping the other competitors out.
His first waste management that he started discussing was in toxic waste: American Ecology (ECOL) he likes becaause of radioactive and toxic waste. ECOL ran 4% after Cramer noted it. Here are his full notes.
Cramer said in a call-in that the big traditional waste company like Waste Management (WMI) trade more like a cyclical sector now. Cramer also said in a call-in that he has been wanting to and been waiting to Ecolab (ECL), but it has never given any sort of pullback that made the valuations worthwhile to get in (he wants a big drop in it to be able to buy it).