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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (5361)	8/10/2010 11:24:43 PM
From: E_K_S	Respond to of 34328

Hi Steve- WM vs RSG I really do not see what Buffet sees in RSG. Just based on the LT debt of both companies, WM is much lower. Maybe he is looking at some other proprietary numbers (perhaps the real estate values & property locations of each company). I compared the two (even w/ Buffet's RSG pick) and choose WM. I would add RSG if they paid a better dividend and was priced around the PE of WM but it is not. EKS

To: Steve Felix who wrote (5361)	8/12/2010 11:58:53 AM
From: Kapusta Kid	Read Replies (2) \| Respond to of 34328

The company in the group performing the best might actually be WCN. Unfortunately (for this thread), WCN does NOT pay a dividend. And of the 3 (WM, RSG, WCN), WCN does have the lowest ROE, but a higher ROE is often the result of more leverage, as it is here. 5Yr Median ROE RSG 15.8 WCN 10.5 WM 18.5 FCF/Total Liab(Last FY) RSG 5.O WCN 12.3 WM 8.0 5Yr Median Gross Margin RSG 37.1 WCN 41.2 WM 36.8 5Yr Median Operating Margin RSG 17.4 WCN 20.9 WM 16.5 5Yr Median Net Margin RSG 8.9 WCN 10.1 WM 8.6 10Yr Shareholder Equity CAGR RSG 18.2 WCN 16.8 WM 3.0 10Yr FCF CAGR RSG 9.5 WCN 22.7 WM -11.0 5Yr Median CROIC RSG 5.3 WCN 6.8 WM 7.0 FCF Yield, FCF growth and Shareholder Equity growth are much more important to me than GAAP earnings, PE or even (at times) dividend yield. WCN certainly has the best looking chart, but all have paltry FCF yields and all appear to be fully valued or almost fully valued, at least by my reckoning. If I were hunting for yield, WCN is a DQ. For all 3, it's down the road.