Two Large Waste Players Buy Stocks They Believe In

Republic Services Inc. and Progressive Waste Solutions Ltd. have announced major stock buy-back plans aimed at gobbling up their own shares at prices they consider to be at a discount.
The Phoenix-based company typically authorizes itself to buy back stock over a one-year period. But this time around, the company opened up a two-year window and said it would repurchase up to $750 million worth of stock during that time.

Edward A. Lang III, treasurer at Republic Services said., “We were planning to have a new authorization at the October board meeting. But with the downdraft in the market, the board decided to accelerate the timing of the authorization that they would have done anyway.”

“Obviously, the reason why the board pulled forward the authorization was to give us the opportunity to continue to be opportunistic regarding share repurchase,” he said.
Progressive plans to buy back up to 4 million shares of common stock. “By purchasing stock at prices lower than what analysts consider it to be worth, the company is getting good return on it use of cash.” Progressive Waste spokeswoman Chaya Cooperberg said.

“We quickly saw that we became the best buy in the space,” Cooperberg said. “I think it did become pretty clear as the share value declined that there was reasonable opportunity for us to be buying our own shares accretively.”

“A lot of companies were looking at their stock prices and realizing it would be very accretive and attractive use of their capital to repurchase their own shares. And that’s what we realized as well,” Cooperberg said.

According to Yahoo Finance writer David Zanoni, Republic Services (NYSE: RSG) and Progressive Waste Solutions (TSX: BIN) are just 2 of 4 waste management companies that he believes have good growth prospects for the future. The others include Waste Management (NYSE: WM) and Casella Waste (NYSE: CWST).


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