Waste Management (WM) and Republic Services' (RSG) Trash is Investors' Gain - Barron's

According to a Barron's article, investment Grand Poobah Warren Buffett bought 3.62 million shares of Republic Services (NYSE: RSG) last week. Republic is the number 2 player in the waste-management service sector, a $56 billion sector. Bill Gates doubled also his holdings in Waste Management (NYSE: WM) to nearly 16 million shares, recently, and has an investment vehicle with a 15% in Republic Services.

Through the downturn of the economy, Republic, WM, and others have been cutting costs while increasing prices.

Both Waste Management and Republic beat on third quarter earnings, and raised and affirms FY09 views. Republic raised their adjusted EPS estimates to $1.46 - $1.48/share, Waste Management reaffirmed their prior guidance.

Republic CEO Jim O'Connor sees his stock as significantly undervalued as he points out that discounted cash-flow has the stock valued at $30. An investor at Highmark Value Momentum Fund sees Waste Management reaching $40 or more.

YTD sees Republic Services up 16% and Waste Management up 4% as of early afternoon trading today.

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