Darling International Inc. (DAR)

[Tina]

Garbage Into Gold
Darling International (NYSE:DAR) is one of those names that many don't know but need to. Darling takes the grease and animal byproduct waste left by restaurants, grocery stores and meat processors. Ever wonder what happens to all that grease that is used to fry McDonald's (NYSE:MCD) french fries? Darling takes care of it for McDonald's for a nice fee.

Despite the fact that shares are up over 50% year to date, Darling shares have great upside in the years ahead. The company has spent years buying up smaller competitors and has become the formidable player in this market. The shares trade for $7.15, valuing the company at $585 million, 32 times current earnings. That looks expensive until you realize that Darling had one quarter with a non-recurring loss of $15 million. Normalized, the company will make over $50 million in profits, less than 12 times earnings. That's a great value for a company with great growth potential.