Tag - ECOL

The tragedy in Japan points to the negative potential impact of living in the nuclear age: dangerous byproducts from energy production, such as radiation. But it's not just a reactor meltdown in Japan that needs to be monitored - there are also many types of routine waste generated today in the U.S. that need to be properly disposed of.

Parexel International Corporation (Nasdaq:PRXL), Kendle International Inc. (Nasdaq:KNDL) and Convergys Corp. (Nasdaq:CVG) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Ceradyne Inc. (Nasdaq:CRDN), American Ecology Corp. (Nasdaq:ECOL), Cynosure Inc. (Nasdaq:CYNO), Crane Co. (Nasdaq:CR), Hill International Inc. (Nasdaq:HIL) and Greenlight Capital Re Ltd. (Nasdaq:GLRE).

Here are the new 52-week lows among small caps:

Parexel International Corporation (Nasdaq:PRXL), Meritage Homes Corp. (Nasdaq:MTH) and Rent-A-Center Inc. (Nasdaq:RCII) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Cynosure Inc. (Nasdaq:CYNO), Ceradyne Inc. (Nasdaq:CRDN), LSB Industries Inc. (Nasdaq:LXU), Convergys Corp. (Nasdaq:CVG), Kendle International Inc. (Nasdaq:KNDL) and American Ecology Corp. (Nasdaq:ECOL).

Here are the biggest percentage losers among small caps:

Argan Inc (Nasdaq:AGX), Allos Therapeutics Inc (Nasdaq:ALTH) and American Ecology Corp (Nasdaq:ECOL) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Augusta Resource Corp (Nasdaq:AZC), Finish Line Inc (Nasdaq:FINL), Idenix Pharmaceuticals Inc (Nasdaq:IDIX), Badger Meter Inc (Nasdaq:BMI), BSD Medical Corp (Nasdaq:BSDM) and Parlux Fragrances Inc (Nasdaq:PARL).

Here are the new 52-week highs among small caps:

American Ecology Corp (Nasdaq:ECOL), Allos Therapeutics Inc (Nasdaq:ALTH) and Merit Medical Systems Inc (Nasdaq:MMSI) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

If the state of the current market has you down in the dumps, look no further than waste management companies American Ecology Corp. (Nasdaq:ECOL) and Casella Waste Systems, Inc. (Nasdaq:CWST), market leaders in two of the best-performing segments – hazardous waste remediation and waste recycling.

Casella Waste Systems, Inc. is the nation’s 12th-largest waste management firm and considered one of the most forward-looking by many industry analysts. This vertically integrated, regional player provides waste collection, transfer, disposal and recycling services to residential and commercial customers across 14 states in the eastern United States. At FY 2008 year end, Casella’s operations consisted of 34 solid waste collection operations, 30 transfer stations, 11 disposal facilities, 38 recycling facilities and three landfill gas-to-energy facilities. The company also holds a 50% interest in a joint venture that manufactures and sells cellulose insulation made from recycled fiber, and has a 20% equity interest in a company that markets incentive-based recycling services to some 250 national and local customers.

Casella was one of the first waste management service providers to recognize an emerging industry trend favoring improved resource management and greater recycling. More than 150 million tons of material was recycled in the United States last year and recycling has become a $71 billion industry employing more than 50,000 workers nationwide. Casella currently derives more than 30% of revenues from recycling. In 2007, the company sold more than 400,000 tons of recycled paper and 15 million tons of recycled aluminum. 

Since 2003, Casella has invested over $200 million in developing strategically located landfill capacity with the goals of strengthening its market position and creating . . .

Delta Natural Gas Co Inc (Nasdaq:DGAS), Seanergy Maritime Units (Nasdaq:SRG.U) and Heckmann Corp (Nasdaq:HEK) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $750 million.

American Israeli Paper Mills Ltd (Nasdaq:AIP), Powell Industries Inc (Nasdaq:POWL) and American Ecology Corp (Nasdaq:ECOL) are also among the new 52-week highs.

Here are the new 52-week highs among small caps:

One man’s trash can be another man’s treasure — especially during recessionary periods. To unearth profits in the unlikeliest of places, waste management companies are generally considered defensive investments since they provide essential services and have long-term contracts. Not bad, especially when you’re Waste Services Inc. (Nasdaq:WSII) and American Ecology Corp. (Nasdaq:ECOL), two fast-growing waste management companies.

Demand for hazardous waste cleanup grew rapidly during the 1970s and 1980s as a result of new environmental laws and actions by federal and state agencies to clean up contaminated sites under the federal Superfund law. Hazardous waste cleanup is a $2 billion North American market today, not including the much larger industrial maintenance market. Barriers to entry are huge because of the arduous federal, state, provincial and local permitting processes. No new competitors have entered North America in the past decade and as a result, established players such as American Ecology and Waste Services are benefiting from more stable pricing and new regulatory requirements that increase in-house disposal costs and encourage outsourcing.

Waste Services provides collection, transfer, disposal and recycling services for commercial, industrial and residential customers in the United States and Canada. The company collects trash for approximately 84,000 commercial and industrial customers and 8.4 million residential homes. The terms of its contracts are typically one to five years for commercial customers and three to 10 years for residential services under contracts with municipalities.

The company operates in the Ontario market where it holds the No. 1 or No. 2 market share in the areas it serves, and in Western Canada, where it has leading market shares in Alberta and British Columbia. Waste Services also operates in Florida, where it ranks No. 3 in market share and No. 2 in disposal capacity. The company . . .

Small-cap stocks opened lower, slightly trimmed losses after the Consumer Confidence report came out at 10:00 a.m. ET, but then retreated right back to pre-release levels. The report showed an upward revision to the March report, which provided a brief bid to the market, but it was not enough to catch hold (at least immediately). At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.84, or 0.25%, at 723.53.

The Consumer Confidence report was pegged at 62.3 in April, which was in line with the forecast of 62, but the March number was revised upward to 65.9 versus 64.5. Still, the April figure was the lowest in five years.

Next on line … President Bush is slated to hold a press conference at 10:30 a.m. ET, where he is expected to talk about the economy.

The opening action was soft in line with overnight declines on a dip in European shares as Deutsche Bank posted its first quarterly loss in five years, and French tire company Michelin tumbled 9% on sloppy earnings.

Large-cap companies influencing trade this morning included drug company Merck & Co. (NYSE:MRK), which was down 7% on news that the FDA rejected a new cholesterol drug. From an overall stock market picture, the news had a somewhat muted impact, because it lifted Merck competitor Abbott Labs (NYSE:ABT) by 4%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, but the financial firm was down 3% in early action.

The S&P 500 stalled approaching the 1,400 level on the latest push upward, and that key figure resistance will be closely watched through the rest of the week’s major economic events. In the Russell 2000, the market yesterday climbed . . .

American Ecology Corp. (Nasdaq:ECOL)
Boise, Idaho
http://www.americanecology.com/

52-week low / high: $18.51 / $26.84
Shares Outstanding: 18.25 million
Market Capitalization: $464 million

Hazardous material might be beneficial for your portfolio. Companies are now mandated by the government — through laws such as the Solid Waste Disposal Act and the Resource Conservation and Recovery Act and the Comprehensive Environmental Response — to dispose of industrial waste and other materials through safe methods. Just how do companies get rid of hazardous waste and comply with federal regulations? Enter American Ecology Corp. (Nasdaq:ECOL), the oldest continuously operating American company that handles, stores, treats and disposes of hazardous and radioactive waste.

Through its U.S. Ecology subsidiary, American Ecology has helped keep a lid on nuclear waste since 1952 and hazardous waste management services since 1968. The Boise, Idaho-based firm handles waste through its facilities in Texas, Nevada, Washington and Idaho.

American Ecology’s customers include some big names. In 2006, Honeywell International Inc. (NYSE:HON) accounted for 38 % of sales and the U.S. Army Corps of Engineers counted for 27%. Other customers include academic institutions, medical facilities, nuclear power plants and steel mills. Along with regular customers, some of its sales are made through large one-time cleaning jobs that can cause unexpected jumps in quarterly revenue. Clean-up projects can last from one week to multiple years.

In 2007, American Ecology’s revenue totaled $165.5 million, up 42% from $116.8 million in 2006 and up 108% from $79.4 million in 2005. Net income during 2007 totaled $19.4 million, or $1.06 per share, compared with $15.9 million, or $0.88 per share, a year earlier.

In terms of Wall Street analyst coverage, February was a positive month for American ecology. During the shortest month of the year, analyst Debra Fiakas of Crystal Equity Research reiterated her "buy" rating on American Ecology, but boosted her price target to $27.25 from $25. On Feb. 8, RBC Capital Markets analyst Jamie Sullivan maintained his "outperform" rating on American Ecology, while raising his price target to $26 from $25. Also on Feb. 8, Sanders Morris Harris analysts reiterated their “buy” rating on American Ecology and raised their price target to $28.50 from $26.50. Likewise on Feb. 8, Wedbush Morgan analysts reiterated their “hold” rating on American Ecology, but raised their price target to $22 from $21.

Even with all the glowing Wall Street coverage, significant risks exist for the firm. A large portion of American Ecology’s business depends upon non-recurring event clean-up projects over which the company has no control. In a regulatory filing, the company said its market is “highly competitive” and faces competition from firms “with much greater resources, service offerings we do not provide and potentially lower pricing.” Some of the firms American Ecology competes with include Waste Management, Inc. (NYSE:WMI), which has a market cap of $16.8 billion, and Clean Harbors, Inc. (Nasdaq:CLHB), with a market cap of $1.3 billion.

Despite the overall market turmoil, shares of American Ecology are up more than 5% in 2008 and more than 30% from the year-ago period. With major indices down during 2008, American Ecology’s stock price movement suggests recession resistance.

Note: American Ecology Corp. (Nasdaq:ECOL) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, American Ecology displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

If there is hazardous waste to care of, give American Ecology Corporation (Nasdaq: ECOL) a call. The company will take the deadly mess, treat it, can it up tight and bury it deep in the desert. It will never be heard from again.

American Ecology has lots of people in big baggy white suits and helmets neutralizing waste in huge stainless drums with giant mixers. They make low-activity and low-level radioactive wastes disappear and do the same with PCB-tainted material. The company has put a lot of money in the past couple of years into expanding its infrastructure, buying railcars and laying track to bring toxic goo to certain company sites. And it’s increased its storage capabilities.

All the more to continue to grow on. Third-quarter revenue through September was up 44% to $39.4 million, operating income up 41% to $6.6 million and net income up 51% to $4.5 million, or at $0.25 per diluted share. This is a volume business, and American Ecology in the third quarter disposed of 269,000 tons — 55% more than the same quarter a year ago — at three remote locations: its Idaho, Nevada and Texas waste facilities. The resulting operating leverage drove quarterly gross profit to $10.3 million in the third quarter of 2007, a 49% increase.

The company is on pace to get rid of one million tons of contaminated refuse in fiscal 2007 — a record. It raised expectations for fiscal 2007, increasing earnings per share guidance to $1.02 to $1.05, up from $0.98 to $1.02, and will initiate 2008 guidance in February, when it releases fiscal 2007 results. With the expanded capacity and lower capital spending expected in next year, volumes and earnings should continue to rise. 

Boise, Idaho-based American Ecology has two business segments: base business and event work. Base business recurs as a company puts out sordid fare as a side serving of its business. About 3.5 million tons of hazardous wastes are produced each year, a fairly static market. Event work is harder to predict but is expected to grow as the government focuses on mopping up the environment.

The major base business source is Honeywell International Inc. (NYSE: HON), which provided 38% of American Ecology’s revenues in 2006. Under a waste disposal contract, Honeywell is expected to ship 1.2 million tons of waste to American Ecology’s Grand View, Idaho facility through November 2009. 

Shares of Houston-based oil and gas equipment provider DXP Enterprises, Inc. (Nasdaq: DXPE) are up following news after Tuesday’s close of strong first-quarter financial results.  Net income for the first quarter ended March 31, was $3.7 million, or $0.65 per share, compared with $2.5 million, or $0.44 per share a year earlier.  Wall Street was looking for earnings of $0.61 per share.  Shares are up $1.43, or 3.34%, to $44.23.