WCA Waste Corp (NASDAQ:WCAA)
CAPS Rating:
The Company provides integrated non-hazardous solid waste collection, transfer, processing and disposal services to customers in Alabama, Arkansas, Colorado, Florida, Kansas, Missouri, New Mexico, North Carolina, South Carolina, Texas and Tennessee.
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* Trading 20% off its high.* Price / Book value .70 * Solid insider ownership at 30.99% of float. (yahoo finance) The company based out of Houston Texas has been on a buying spree which explains the intimidating amount of debt and lack of earnings. They operate 24 landfills, 27 collection operations, and 23 transfer stations. Go here http://www.wcawaste.com/Default.asp?Page=17 to read about the senior management. They are grizzled veterans of the industry and clearly know what it takes to succeed in the highly competitive industry. With massive debt and little earnings, a long term investor should worry about making such a speculative selection. However, despite the extremely competitive nature of the industry, it is also necessary and not likely to suffer serious downturns. The company also has the assets and contracts to back up the present valuation which can be contrasted against companies that float their valuations on hope. So I am taking a chance on a proven management team working for a company clearly flying under the radar.
See recent ownership purchase of stock: February 12, 2008 Fatjo Tom J Jr Award of Stock Options 40,609 0.00-0.00 925,035 $0 Kruszka Jerome Michael Award of Stock Options 40,609 0.00-0.00 573,394 $0 Fatjo Tom J Iii Award of Stock Options 22,836 0.00-0.00 415,396 $0 Casalinova Charles A Award of Stock Options 27,414 0.00-0.00 273,068 $0 January 8, 2008 Kruszka Jerome Michael Award of Stock Options 41,624 0.00-0.00 536,247 $0 Fatjo Tom J Iii Award of Stock Options 31,220 0.00-0.00 395,049 $0 Fatjo Tom J Jr Award of Stock Options 41,624 0.00-0.00 887,888 $0 Casalinova Charles A Award of Stock Options 31,220 0.00-0.00 248,476
I realize this is an ancient pitch and ancient replies, but those are all options. I would "purchase" them too if they were awarded to me. People seem to still love this stock but I don't see it.