American Ecology Corp (ECOL)

HighHopesInSD (66.08) Submitted: 3/31/2008 7:08:18 PM : Start Price: $24.15 ECOL Score: +9.15

Sales and EPS rising in each of the past 3 years. The profit margin has been falling in each of the past 3 years, so that is a bad mark. However, the ROE has been rising in each of the past 3 years, so that is nice. The company has virtually no debt, so that is a very good thing. The current P/E is consistent with historical averages, so the stock is reasonably priced. The dividend yield is about 2.5%, so not too bad. I still think this stock has good prospects, so I consider it a buy at this price. Trash is something that is always made, (especially here in America, with our "disposable society"), and not too many people are set up to dispose of radioactive or hazardous waste, so they should have good revenue going forward. Also, there is a lot of talk about building more nuke plants here in the U.S., (for the first time in like 30 years), due to the high price of oil, so ECOLs client base could be growing. All told, I think this stock has good prospects.