I know what you mean about Mexicans - they work their tails off and never complain, even in sweltering heat or freezing cold. I have a condo, and many of the outdoor lawn + tree maintenance guys are Hispanic, and I see first hand how hard these guys work. The current immigration policy in the US is a cynical attempt by the Deep State ghouls to deliberately weaken the country, make it lose its cultural identity, etc. But most of the people coming in that I've come across seem solid and much harder working than people who have been here for generations.
There's a State Park nearby here for walking / hiking (Phila suburbs), and in addition to Hispanics there are tons of people from all over - Eastern Europe, Russia, Asia, India, Middle East, you name it, and they seem like solid people. Anyway, longer term I think the US will be stronger from the infusion of 'new blood'. That said, the sheer number of immigrants coming in is too high, and they need to have some annual limits to allow time for assimilation, etc, and also they should be screening out known criminals, carriers of contagious diseases, etc. Most of that screening isn't being done however, because the Deep State's main motivation for the open borders is to weaken/screw up the US, just like the schools are meant to dumb down the kids, the drugs they (CIA) bring in are meant to weaken and wreck society ahead of the coming 1984 dystopia.
>> together on another planet <<
Yes, I hear ya, and feel exactly the same way. But at our age I guess we just have to make the best of things. I remember saying to an older guy 'Nice day', and he replied with a smile that 'Any day you wake up is a nice day' :o)
GFP, With LAND and DBA, I was trying a trading system and it was not working like I thought, only lost a couple hundred, but was just toying. I could see the light. All I got is RIBT, waiting for the final dispersal which I hope happens in early August. Guessing they are waiting for the Q2 financials.
Santefe2 is not one to debate. He is a closed minded liberal. Dew had a great active poster there, OakesCS, Charley Oakes. He is a scientist for a major oil company and really knows his stuff. He got so ticked at Santefe that he quit posting a couple of years ago. I was a roofing and siding contractor for 30 years, retired in 2008. Santefe was talking up solar panels on roofs and I could not tell him the costs and hassle of doing a second roof or even roof repair with solar panels already on the the roof.
1. To do a 2nd roof, you got to take the panels down and reinstall them to do the roof. So, double the original labor of the original solar install. If the installer would not do it, no contractor with 10% of a brain would want anything to do with the job.
2. Roof leak" maybe a simple job, but remove panels to get at it? A $200 repair might need the solar company to remove and reinstall.
3. They were just coming in the last 1/2 of my career. I would not touch the job, it would be what we call a "Drive By".
4. I did do 2 jobs that had solar, but the owners had them taken down before i started the job and thrown away before I started the job, by agreement. They were not saving them anywhere near the cost of them after 10 years, in one of the 2. I had reroofed his house 20 years earlier, then 5 years later put them up. 15 years an losing money.
5. Imagine a roofer trying to take them down and reinstall and he breaks a panel and they probably won't make the same panel 10 years down the road. OMG.
BTW, I passed up a couple of siding jobs that had panels on the south side of the house.
Summary, they are a rip off and might save money if electric rates inflation adjusted went up 8 fold or more and if they lasted 20 years and redid the roof and solar at the same time.
My folks had a double wide trailer winter home on Key Largo. They had a big shed with a shower in it. Above it was a big black water tank with a valve water line to fill it as needed. By noon everyday it was warm enough to take a shower. Now, that was efficient solar and it was free, except for the big flat tank.
GFC, on the whole, I love Mexican people. 2/3's the way through my business years we had a big hailstorm here in Minnesota in 1998 and storm chasers brought in Mexican roofers from Texas, and many stayed and more followed with other storms. Near the end I had 2 crews of Mexicans. They would have worked 12 hours per day 6 days a week if I had the work, needed church on Sunday. Before them I had like white alcoholics, etc. I had only 1 Black in 30 years and he only lasted 1 month. I will take the Mexicans any day. The problem now is our government is ruining them with free money like they have done to the Blacks. My lover and I hope there is reincarnation and she and I will end up reincarnated together on another planet.
Btw, Looking at the LAND chart, it looks like it could move up to test the 200 MA, but still have to be wary of a return to re-test the double bottom from March and May. The other farmland REIT (FPI) is already back above its 200 MA, and has held up better overall. I don't really understand that sector very well though. In the broader agro areas, the DBA chart isn't looking too bad, but looks like MOO is still in a gradual downtrend. I figure those ETFs would be better than trying to pick a particular commodity.
Fwiw, I've been mainly sticking to the S+P 500. I wanted to just sit with it, but as it gets more overextended I've been selling when the RSI gets in the 70s, then re-buying after the pullback. So far so good, and it keeps things from getting too boring :o) Powell & Co return soon, so that's usually a time to take profits, wait for the drop, then reload. That's been the pattern anyway. Grumpy Jerome always seems to tank the market for a few days. I already took profits though, so not sure if I'll bother trying to time this Fed meeting, may just wait for the post meeting 'tank'.
Oh well, dog days of summer. The new BRICS currency announcement is coming Aug 22, but even bigger will be the concurrent announcement that Saudi Arabia is joining the BRICS. Yikes, bye bye Petrodollar, ugh. Dark days approach for the US / dollar, but we can't assume the unraveling will happen immediately, it might take some time (?) But per the old saying - 'bankruptcy happens gradually, then all at once'..
Yes, best to stay far away from the Bitcoin / crypto sector imo. People have made money trading it, but the central bank finance ghouls were never going to allow competition to their monopoly control over what we use as 'money'. The CBDC is their future, so cryptos are being 'deep sixed' and regulated out of existence.
Or so goes the logic, but now we see Blackrock entering with their spot Bitcoin ETF. According to the article, the ETF's 'surveillance-sharing agreement' aspect is the clincher that will allow the SEC to approve the ETF. So presumably any anonymity aspect to Bitcoin will be gone, but the 'surveillance-sharing' feature could be the main thrust, and have other functions. I generally stay away from Blackrock ETFs anyway.
Bitcoin and the cryptos are currently having a big bounce off the bottom, which I guess shouldn't be too surprising since the US dollar is tanking so hard lately. Longer term the dollar's prospects do not inspire confidence, thanks to ominous factors like de-dollarization, the parabolic US debt, the new BRICS currency, etc. But the crooks at Blackrock will always find a way to profit, perhaps as you said, by 'selling and shorting into the rally they are creating'. Personally, I'll stay clear of the crypto space.
That Blackrock story is getting around. I wonder if they are selling and shorting into the rally they are creating. Blackrock and Vanguard control most everything these days.
Cryptos broke a declining resistance lines. I could see RIOT going to if it breaks the March 2022 high then to 45 anyway. Not buying.
Spot bitcoin ETF - >>> BlackRock CEO Larry Fink Talks Up Crypto Demand From Gold Investors
by Jamie Crawley
July 14, 2023
Larry Fink was in a bullish mood on Friday as he spoke of the increasing demand he is seeing for cryptocurrencies among gold investors.
Appearing on CNBC following his company's second-quarter earnings report, the CEO of $8.5 trillion asset manager BlackRock (BLK) said "more and more" gold investors have been asking about the role of crypto over the last five years, highlighting the role exchange-traded funds (ETFs) have had in democratizing access to gold, as they could do in crypto.
"If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years ... an international crypto product can really transcend that," he said. "That's why we believe there's great opportunities and that's why we're seeing more and more interest. And the interest is broad-based [and] worldwide."
BlackRock filed an application to list a spot bitcoin ETF last month with a surveillance-sharing agreement worked in, which could prove to be the deciding factor in the U.S. Securities and Exchange Commission (SEC) finally approving such a product after rejecting dozens of applications in recent years.
"As with any new markets, if BlackRock's name's going to be on it, we're going to make sure it's safe and sound and protected," Fink added.
>>> 11 Best Recycling Stocks To Buy Now
by Hamna Asim
December 21, 2022
In this article, we discuss 11 best recycling stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Recycling Stocks To Buy Now.
The global waste recycling services market was valued at $57.69 billion in 2021 and is expected to be worth $88.01 billion by 2030, indicating a compound annual growth rate of 4.8% during the forecast period of 2022 to 2030. The high volume of global economic activities has heightened the demand for recycling of waste materials.
The recycling sector has become an integral part of the urban infrastructure since it ensures the protection of both the human health and environment. In addition to higher urbanization and the expanding industrial sector, the growing agricultural production leads to more wastage from the agro-industries, thus driving the demand for the waste recycling services across the globe.
There are new entrants looking to resolve the lags in the waste management and recycling industry. For example, solar panels are considered green hardware, but older versions of panels are turning into hazardous waste. Thus, a California-based startup, SolarCycle, is using that waste by recycling parts of the older panels and disposing them off for profit. SolarCycle asserts that it can cheaply extract about 95% of the important materials in solar panels, like silver, silicon, copper, and aluminum. These can then be recycled or repurposed, resulting in an efficient circular solar economy.
Some of the best recycling stocks to invest in include Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG).
We selected the following recycling stocks based on positive analyst coverage, strong business fundamentals, and market visibility. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged according to the number of hedge fund holders in each firm.
Best Recycling Stocks To Buy Now
11. Montrose Environmental Group, Inc. (NYSE:MEG)
Number of Hedge Fund Holders: 8
Montrose Environmental Group, Inc. (NYSE:MEG) was founded in 2012 and is headquartered in North Little Rock, Arkansas. It is an environmental services company in the United States, operating through three segments – Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. It provides its services to the technology, media, chemical, energy, power and utility, industrial and manufacturing, financial, and engineering industries, as well as local, state, provincial, and federal government entities.
On December 12, BofA analyst Andrew Obin upgraded Montrose Environmental Group, Inc. (NYSE:MEG) to Buy from Neutral, citing a forecast for accelerating earnings growth in 2023. Montrose Environmental Group (NYSE:MEG) stock also rose on December 12 after the company announced it had acquired Huco Consulting, a company focused on safety and ESG goals, to expand its range of environmental services.
According to Insider Monkey’s data, 8 hedge funds were bullish on Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the third quarter of 2022, compared to 9 funds in the last quarter. Richard Driehaus’ Driehaus Capital is the largest stakeholder of the company, with 342,461 shares worth $11.5 million.
Like Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Montrose Environmental Group, Inc. (NYSE:MEG) is one of the best recycling stocks to consider buying.
Here is what Baron Funds specifically said about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q2 2022 investor letter:
“Montrose Environmental Group, Inc.(NYSE:MEG), an environmental services company, underperformed during the quarter. Despite reiterating guidance for 2022, Montrose underperformed as the market penalized high-growth companies generally. We continue to remain positive on the company’s prospects and ability to achieve or beat its long-term growth target of over 20% per year. We remain particularly excited about Montrose’s potential to benefit from increased government regulation around PFAS chemical contamination and methane emissions.”
10. Quest Resource Holding Corporation (NASDAQ:QRHC)
Number of Hedge Fund Holders: 9
Quest Resource Holding Corporation (NASDAQ:QRHC) is a Texas-based company that provides solutions for the reuse, recycling, and disposal of waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, goods destruction, food waste, plastics, cardboard, metal, glass, mixed paper, construction debris, and regulated and non-regulated solid, liquid, and gas wastes. Even without gaining new clients, existing customers will likely expand operations and require more waste services, making Quest Resource Holding Corporation (NASDAQ:QRHC) one of the premier recycling stocks to invest in.
On April 18, EF Hutton analyst Chip Moore initiated coverage of Quest Resource Holding Corporation (NASDAQ:QRHC) with a Buy rating and a $13 price target. As a leading national provider of waste and recycling solutions, Quest Resource Holding Corporation (NASDAQ:QRHC) is "differentiated" by its asset-light, national footprint, and ability to handle comprehensive waste streams, the analyst told investors. He noted that the company has also developed "valuable" data warehousing capabilities, offering full waste-stream services for its clients.
According to Insider Monkey’s data, 9 hedge funds were long Quest Resource Holding Corporation (NASDAQ:QRHC) at the end of September 2022, with collective stakes worth $29.5 million, compared to 7 funds in the prior quarter worth $14.7 million. Nelson Obus’ Wynnefield Capital is the leading position holder in the company, with 2.5 million shares worth $21.7 million.
Here is what Long Cast Advisor specifically said about Quest Resource Holding Corporation (NASDAQ:QRHC) in its Q2 2022 investor letter:
“Quest Resource Holding Corporation (NASDAQ:QRHC) borrowed heavily to purchase Rome RWS, Inc., and with results from the acquired company not yet fully on the income statement, the debt ratios expanded and equity valuations declined. Management – and really the Board – is undertaking a high skill maneuver of integrating its largest acquisition to date, carrying an unprecedented level of debt all concurrent with the long planned retirement of the long tenured CFO. It’s a little more exciting than necessary but the valuation is undemanding and the opportunity set is quite large.
Since I’ve long written about what this company could look like if it leaned more deeply into utilizing technology within its two-sided marketplace, I’ll be closely following the XPO Logistics (XPO) spinoff of the truck brokerage business, expected in 4Q22. Truck and waste brokerage share some similar dynamics and as I’ve long noted, the technologist at XPO worked at Oakleaf concurrently with QRHC CEO Ray Hatch. Technology was a big enabling factor at Oakleaf and in XPO’s +10x growth. I think it would have a similar function for QRHC were management to wisely invest time and resources in its development.”
9. Li-Cycle Holdings Corp. (NYSE:LICY)
Number of Hedge Fund Holders: 15
Li-Cycle Holdings Corp. (NYSE:LICY) is headquartered in Toronto, Ontario, and the company engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. On October 13, the company announced that it has initiated commercial operations at its lithium-ion battery recycling facility in Alabama. The facility, which is based in Tuscaloosa, uses patented technology to recycle and directly process full EV battery packs without any dismantling through a submerged shredding process that produces no wastewater. Li-Cycle Holdings Corp. (NYSE:LICY) is one of the premier recycling stocks to invest in.
On December 15, ??Citi analyst P.J. Juvekar maintained a Buy recommendation on Li-Cycle Holdings Corp. (NYSE:LICY) but lowered the firm's price target on the shares to $7.50 from $8. The analyst observed that while there is an inclination to go back to cyclical chemical names after having lagged in 2022, he has decided to "stay defensive" going into 2023.
According to Insider Monkey’s data, 15 hedge funds were long Li-Cycle Holdings Corp. (NYSE:LICY) at the end of September 2022, and Zilvinas Mecelis’ Covalis Capital is the leading position holder in the company, with 11.6 million shares worth $61.8 million.
8. Heritage-Crystal Clean, Inc (NASDAQ:HCCI)
Number of Hedge Fund Holders: 19
Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an Illinois-based company that provides parts cleaning, hazardous and non-hazardous waste, and used oil collection services to small and mid-sized customers in the industrial and vehicle maintenance sectors in the United States and Canada. The company also provides containerized waste management, wastewater vacuum, antifreeze recycling, and field services. Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is one of the leading recycling stocks to invest in.
On October 19, Heritage-Crystal Clean, Inc (NASDAQ:HCCI) reported Q3 non-GAAP earnings per share of $1.01 and a revenue of $172.22 million, outperforming Wall Street estimates by $0.21 and $17.23 million, respectively. The Q3 revenue increased nearly 40% compared to the prior-year quarter.
Needham analyst James Ricchiuti on October 21 maintained a Buy rating on Heritage-Crystal Clean, Inc (NASDAQ:HCCI) but trimmed the firm's price target on the shares to $40 from $43 as he noted that the company delivered "another impressive quarterly report." Oil business margins are forecasted to shrink in Q4 as a result of downtime in Heritage-Crystal Clean, Inc (NASDAQ:HCCI)’s refinery, which may have contributed to the pullback in shares, but it is "unwarranted," the analyst wrote in a research note.
According to Insider Monkey’s data, 19 hedge funds were long Heritage-Crystal Clean, Inc (NASDAQ:HCCI) at the end of September 2022, compared to 16 funds in the last quarter. Chuck Royce’s Royce & Associates is the largest stakeholder of the company, with 1.15 million shares worth $34 million.
Meridian Funds made the following comment about Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in its Q3 2022 investor letter:
“Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an environmental services company focused on machine parts cleaning, used oil collection, oil re-refining, and hazardous and non-hazardous waste services. Our rationale for investing in this company includes the recurring revenue stream it generates from its environmental services business unit and substantial growth opportunities in the re-refinery and used oil collection segments. Continued strong execution and higher oil prices contributed to the stock’s solid performance during the period. Notably, Heritage-Crystal Clean’s oil business segment generated record revenue in the second quarter and saw segment margins improve to 41%, as the spread between base oil sales and the cost of collecting used oil widened. The company’s core environmental services segment also recorded record quarterly revenue. We believe the environmental, social, and governance (ESG) story at Heritage remains under appreciated by the market as the company collects used motor oil and recycles it for reuse. We have high conviction in the long-term growth story for the company, but trimmed our position in the stock during the period as the share price appreciated.”
7. PureCycle Technologies, Inc. (NASDAQ:PCT)
Number of Hedge Fund Holders: 23
PureCycle Technologies, Inc. (NASDAQ:PCT) was founded in 2015 and is headquartered in Orlando, Florida. The company produces recycled polypropylene (PP) and holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to turn it into virgin-like resin. PureCycle Technologies, Inc. (NASDAQ:PCT) is one of the best recycling stocks to consider. At the end of September 30, the company had total liquidity of $416.1 million, including $215.0 million of cash, cash equivalents, and debt securities available for sale and $201.1 million in restricted cash.
On November 11, Cowen analyst Thomas Boyes maintained an Outperform rating on PureCycle Technologies, Inc. (NASDAQ:PCT) but lowered the price target on the shares to $11 from $15. The analyst said as expected, pellet production at Ironton shifted into January and said the facility is still forecasted to fully ramp at the end of 2023.
According to Insider Monkey’s third quarter database, 23 hedge funds were bullish on PureCycle Technologies, Inc. (NASDAQ:PCT), with collective stakes worth $407.7 million, compared to 23 funds in the prior quarter worth $400.6 million. Daniel Patrick Gibson’s Sylebra Capital Management is the leading stakeholder of the company, with more than 29 million shares worth $235.5 million.
6. Casella Waste Systems, Inc. (NASDAQ:CWST)
Number of Hedge Fund Holders: 23
Casella Waste Systems, Inc. (NASDAQ:CWST) operates as a vertically integrated solid waste services company in the United States. The company offers resource management services including solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company lifted its full-year 2022 revenue guidance to between $1.065 billion and $1.080 billion from a prior range of $1.035 billion to $1.050 billion. The consensus revenue came in at $1.04 billion.
On October 24, Jefferies analyst Stephanie Moore initiated coverage of Casella Waste Systems, Inc. (NASDAQ:CWST) with a Buy rating and a price target of $95, down from $103. The company offers superior pricing power given its Northeast concentration, as well as the ability to see accelerated margins from operating leverage and efficiency investments, the analyst told investors in a research note. She added that Casella Waste Systems, Inc. (NASDAQ:CWST) is also the only public waste company its size not to be acquired, which provides "downside support to valuation on a takeout potential".
According to Insider Monkey’s data, 23 hedge funds were long Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the third quarter of 2022, compared to 17 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 686,959 shares worth $52.5 million.
In addition to Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Casella Waste Systems, Inc. (NASDAQ:CWST) is one of the leading recycling stocks to monitor.
5. GFL Environmental Inc. (NYSE:GFL)
Number of Hedge Fund Holders: 28
GFL Environmental Inc. (NYSE:GFL) is a diversified environmental services company operating in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business includes the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste for municipal, residential, and commercial and industrial customers.
On November 2, GFL Environmental Inc. (NYSE:GFL) reported a Q3 non-GAAP EPS of $0.20 and a revenue of $1.83 billion, topping market estimates by $0.04 and $570 million, respectively. It is one of the premier recycling stocks to invest in.
CIBC analyst Kevin Chiang on December 14 raised the firm’s price target on GFL Environmental Inc. (NYSE:GFL) to C$50 from C$46 and maintained an Outperform rating on the shares.
According to Insider Monkey’s data, 28 hedge funds were long GFL Environmental Inc. (NYSE:GFL) at the end of Q3 2022, compared to 25 funds in the last quarter. Robert Pohly’s Samlyn Capital is the largest stakeholder of the company, with 4.5 million shares worth $114.3 million.
Here is what Ave Maria specifically said about GFL Environmental Inc. (NYSE:GFL) in its Q2 2022 investor letter:
“GFL Environmental Inc. (NYSE:GFL) is a growing solid waste management company. In the first quarter of 2022, revenue increased 11.3% on an organic basis and 27.4% including acquisitions. At the company’s investor day in May, the management provided increased free-cash-flow guidance for 2022, 2023 and 2024., which looks very positive.”
4. Clean Harbors, Inc. (NYSE:CLH)
Number of Hedge Fund Holders: 30
Clean Harbors, Inc. (NYSE:CLH) is a Massachusetts-based company that provides environmental and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen Sustainability Solutions. The Safety-Kleen Sustainability Solutions segment offers pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal. Clean Harbors, Inc. (NYSE:CLH) is one of the leading recycling stocks to invest in.
Baird analyst David Manthey on November 3 raised the price target on Clean Harbors, Inc. (NYSE:CLH) to $155 from $150 and maintained an Outperform rating on the shares. The analyst sees a good setup for ongoing solid pricing and deferred waste streams, perhaps cushioning results, while PFAS/reshoring/increased blended oil sales could also augment his view.
According to Insider Monkey’s data, 30 hedge funds were long Clean Harbors, Inc. (NYSE:CLH) at the end of September 2022, with combined stakes worth $497 million, compared to 28 funds in the prior quarter worth $408 million. Ian Simm’s Impax Asset Management is the largest position holder in the company, with 1.12 million shares valued at $123 million.
Meridian Funds made the following comment about Clean Harbors, Inc. (NYSE:CLH) in its Q3 2022 investor letter:
“Clean Harbors, Inc. (NYSE:CLH) is a leading hazardous waste treatment, storage, and disposal management company in North America and one of our longer-term holdings. Particularly impressive are its hazardous waste incinerators, which are nearly impossible to replicate. We also like its oil re-refinery business which is gaining recognition as a sustainable source of motor oil. Through cost controls and price increases, the company was successful in managing the inflationary environment during the period. Utilization of its incinerator network reached 90% during its most recently reported quarter and pricing increased 18% from a year ago. High and increasing base oil prices provided an additional boost to its re-refinery business, widening the spread between the price Clean Harbors charges for its refined oil and the price it pays for used oil. A resurgence in U.S. manufacturing activity and the accretive acquisition of HydroChemPSC also contributed to investors’ enthusiasm for the stock. Although our long-term outlook for Clean Harbors remains upbeat, we trimmed our position in the stock due to the company’s high debt balance as a result of the acquisition. We also believe the economic slowdown may eventually impact Clean Harbors, which operates in a late-cycle industry and therefore tends to have a delayed response to economic developments.”
3. LKQ Corporation (NASDAQ:LKQ)
Number of Hedge Fund Holders: 32
LKQ Corporation (NASDAQ:LKQ) was incorporated in 1998 and is headquartered in Chicago, Illinois. The company deals in auto replacement parts, components, and systems used in the repair and maintenance of vehicles. LKQ Corporation (NASDAQ:LKQ) provides scrap metal and other materials to metals and automotive recyclers. The company raised its latest quarterly dividend by 10% to $0.275 per share, which was paid to shareholders on December 1. The board also authorized a $1 billion increase and one-year extension to its stock repurchase program, lifting the aggregate repurchase authorization to $3.5 billion through October 25, 2025.
On July 12, MKM Partners analyst Scott Stember initiated coverage of LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $68 price target. Prospects for LKQ Corporation (NASDAQ:LKQ)’s North American business “have never been better” and the effective scaling of the European business has yielded gains in segment sales and profits, said the analyst, who added that “LKQ has turned into a cash flow-generating machine.”
According to Insider Monkey’s data, 32 hedge funds were long LKQ Corporation (NASDAQ:LKQ) at the end of September 2022, compared to 31 funds in the earlier quarter. ValueAct Capital is the leading stakeholder of the company, with 12.5 million shares worth $592 million.
Bonsai Partners mentioned LKQ Corporation (NASDAQ: LKQ) in its first-quarter 2021 investor letter. Here’s what they said:
“LKQ is the largest provider of alternative collision and mechanical automotive parts in the United States. In Europe, they are the leading distributor of general automotive maintenance parts and supplies. Its shares appreciated 20.1% during the quarter.
During the quarter, LKQ shared its fourth-quarter results: showing a slight revenue decline and a nearly 30% increase in quarterly profit Vs. the same period last year. COVID has proved a surprising catalyst for my investment thesis which revolves around optimizing their recent large acquisitions that were never efficiently integrated.
Admittedly, in addition to LKQ’s quarterly performance, thematically, there has been broad enthusiasm for “re-opening” trades, of which, LKQ has been a beneficiary. Most importantly, the prior overhang related to LKQ’s debt burden is now all but behind us. Their net debt to EBITDA ratio now sits below 2x, a stark change from the near 3x leverage ratio before the pandemic. At that time, LKQ’s leverage had the potential to spiral upward to nearly 4-5x if the business experienced a prolonged shutdown. It’s good to be past this issue.”
2. Waste Connections, Inc. (NYSE:WCN)
Number of Hedge Fund Holders: 33
Waste Connections, Inc. (NYSE:WCN) is a provider of non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. The company offers collection, landfill disposal, and recycling services to residential, commercial, municipal, industrial, and exploration and production customers. It is one of the top recycling stocks to monitor. Waste Connections, Inc. (NYSE:WCN) raised its latest quarterly dividend by nearly 11% to $0.255 per share, which was distributed to shareholders on December 1.
On October 24, Jefferies analyst Stephanie Moore initiated coverage of Waste Connections, Inc. (NYSE:WCN) with a Buy rating and a $165 price target. The analyst said the stock is best-in-class amongst its waste peers with above-average pricing growth and margins due to its suburban market exposure, as well as the exclusivity from its franchise contracts. The analyst added that she views it has a clear line of sight into at least low double digit revenue growth in 2023.
According to Insider Monkey’s Q3 data, 33 hedge funds were long Waste Connections, Inc. (NYSE:WCN), compared to 34 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 2.15 million shares worth $290.4 million.
Conestoga Capital Advisors made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2022 investor letter:
“Waste Connections, Inc. (NYSE:WCN): WCN is a leading waste management service company that provides collection, recycling, transfer and disposal services in North America. This top ten holding performed well during the quarter given the consistency of its business model with stable volumes, strong pricing power and healthy margins.”
1. Republic Services, Inc. (NYSE:RSG)
Number of Hedge Fund Holders: 41
Republic Services, Inc. (NYSE:RSG) is an Arizona-based company that offers environmental services in the United States. The company provides collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. It is one of the best recycling stocks to invest in. On October 27, Republic Services, Inc. (NYSE:RSG) reported a Q3 non-GAAP EPS of $1.34 and a revenue of $3.59 billion, outperforming Wall Street estimates by $0.12 and $60 million, respectively.
BMO Capital analyst Devin Dodge on December 7 downgraded Republic Services, Inc. (NYSE:RSG) to Market Perform from Outperform with a price target of $148, down from $152. Republic Services, Inc. (NYSE:RSG) has meaningfully outperformed the market this year, indicating robust industry conditions, strong execution, and an investor preference for defensive stocks, the analyst told investors in a research note. While solid waste stocks normally outperform deep into a recession, the much anticipated economic pullback has meaningfully been reflected in the relative share price performance, noted the analyst. As such, he sees lower potential returns over the next 12 months. Despite the downgrade, he still believes Republic Services, Inc. (NYSE:RSG) could be attractive for individuals with a longer investment horizon.
According to Insider Monkey’s data, 41 hedge funds were long Republic Services, Inc. (NYSE:RSG) at the end of Q3 2022, compared to 33 funds in the last quarter. Richard Chilton’s Chilton Investment Company is a notable position holder in the company, with 1.38 million shares worth $188.5 million.
Agro Sector ETFs - >>> VanEck Sees ‘Minimal’ Impact on Food Industry From Agriculture Security Bill
by Riccardo Zerilli
February 15, 2023
As concerns over China’s balloon heightened national security concerns in recent days, a bipartisan group of U.S. legislators wants to protect U.S. farms from foreign ownership.
"Chinese purchases—whether it be businesses, government, individuals, some kind of Chinese entity—of our agricultural land is still quite small, but it's actually growing very quickly,” Dexter Tiff Roberts, a senior fellow with the Atlantic Council's Asia Security Initiative, told Scripps News. “So, I do think we should pay attention to that."
The Promoting Agriculture Safeguards and Security (PASS) Act aims to prevent China, Iran, Russia and North Korea from investing in U.S. agriculture companies.
China specifically faces a considerable disparity between population and farmable land: Although the country makes up 20% of the global population, only 7%-9% of its land is arable. This issue has prompted Beijing to look outside of its borders to provide the necessary food supply for its people. This buying spree created a security issue.
Impact of New Legislation on Food Insecurity ETFs
While the PASS Act aims to reduce the competition faced by U.S. farmers and improve food supply control, the overall impact of the new legislation may be limited in the long term.
Shawn Reynolds, portfolio manager for the active Natural Resources Equity Strategy at VanEck, sees little impact from the PASS ACT for the U.S. food industry.
"This act seems to try to prohibit land acquisition adjacent to or near sites of significant national military or intelligence significance. The U.S. has almost a billion acres of farmland, the second most arable land in the world after India. The ability to impact food production by hostile countries acquiring agricultural land is minimal," he said.
Reynolds argued that food insecurity will likely increase in the next several years as the global population grows from 8 billion to 10 billion by 2050, urbanization increases and the middle classes expand.
The agriculture sector is also responsible for using 50% of habitable land, 70% of global freshwater and 78% of the world's ocean and freshwater pollution. Additionally, domestic livestock accounts for 94% of all mammals on the earth, excluding humans.
"Food insecurity ETFs must focus on increasing the production of food, but also on doing it more sustainably and while improving the nutritional content of diets," Reynolds added.
VanEck has two agriculture-related ETFs: The Agribusiness ETF (MOO), which has been around since August 2007, and the Future of Food ETF (YUMY), with an inception of November 2021.
MOO invests primarily in large and midcap companies in the traditional agricultural industry. YUMY invests mainly in agri-food technology and innovation companies, including those addressing food insecurity.
Global Food Crisis
With food prices reaching new highs, the number of severely food-insecure people has doubled in the past two years. There are more than 850 million undernourished people today, and with the world population set to grow 30% by 2050, this figure will continue to rise.
Moreover, the war in Ukraine has contributed to a significant disruption in the food supply. Russia and Ukraine have been responsible for almost 30% of wheat, 15% of corn, 25% of barley and more than 75% of global sunflower oil production over the last five years.
Another significant disruption caused by this conflict is the increase in fertilizer prices; Russia is the leading exporter, and many countries had to reduce crop production after facing higher costs driven by the disruption in the global supply of nitrogen and potash nutrients, which are essential fertilizers in commodity crops like corn and soybean.
ETFs to Consider
Outside of YUMY and MOO, investors can navigate this global food crisis with other great ETF opportunities. The Global X MSCI SuperDividend EAFE ETF (EFAS) tracks an index of stocks from developed countries outside North America. This ETF includes holdings in companies such as Nestle, Danone and Unilever in Europe, Australia and Asia.
It has an expense ratio of 0.55%. Even though it is relatively new to the market, it has seen a 7.8% year-to-date gain, and in the last three months alone, it registered more than a 28% gain.
The Invesco Dynamic Food & Beverage ETF (PBJ) offers exposure to 30 U.S. stocks in the food and beverage industry, such as PepsiCo, Hershey Company and Kroger Co. The portfolio also includes restaurants and food retailers; it has a weighted average market cap of $34 billion and an expense ratio of 0.63%.
The First Trust Nasdaq Food & Beverage ETF (FTXG) follows a liquidity-selected, multifactor-weighted index of U.S. food & beverage companies. It includes 30 U.S. food and beverage companies. It has an expense ratio of 0.60% and more than $920 million in assets under management.
Both ETFs offer exposure to U.S. companies and have generated average returns of 6% and higher in the last five years.
More risk-averse investors may prefer the Global X AgTech & Food Innovation ETF (KROP) since it is a passive investing fund with a relatively low expense ratio of 0.50%. It tracks companies related to advancing innovation and technologies in the agricultural and food industry space.
Lastly, the Teucrium Wheat Fund (WEAT) may be a good choice for investors who want to capitalize on sudden shocks in the market but need to be aware of the risks implied in commodity-driven ETFs. The ETF charges an expense ratio of 1.14% and has almost $200 million in AUM.