Investors are punishing Waste Management this morning after the company announced lower-than-expected earnings for the 3rd quarter.
Earnings fell from $300 million to $278 million for the quarter, year over year - a drop of around 7%. The stock, a recent addition to our Evergreen Portfolio, is down 6% this morning.
Here's the ironic thing. Most of this was due to the fact that oil prices have increased to the point where using gas and diesel is as expensive as using alternative fuels like natural gas and biodiesel. As the disparity between traditional fuels and alt fuels has diminished, so have the tax benefits to corporations under Section 45K.
The credits are based on the disparity, and designed to help companies pay for going green. But when the disparity decreases, the amount of benefits decrease.
It's rather ironic. But this is an odd case of WMI being punished for high oil prices... because of its efforts to go green.
Nonetheless, the company's fundamentals are still the same as when we recommended WMI. We still believe this is a good company, and that it will bounce back from this snafu.
Friday, October 26, 2007
- December (9)
- November (11)
- Become a Brazilian Ethanol Venture Capitalist for ...
- The Big Oil Swoon Cometh? Whaddya Think?
- Green Energy Resources Rallys 12.5%... And Keeps t...
- WMI Hit Hard After Earnings Announcement
- Update On Our Oil Prediction
- A Note About Over the Counter Stocks and Green Inv...
- Our Green Investments Portfolio: Up 266%... Includ...
- Green Energy Resources Scores $5.5 Million Contrac...
- Beating the S&P 500 by 2,000%... with ONLY Green I...
- Our Green Energy Resources Position Jumps 18.75%
- Tom Brady IPO... The Coming Stock Rally... Oil Loo...
- Markets Meltdown... WMI Rallies... Plus 6 Steps to...
- Add Waste Management (WMI) to the Evergreen Portfo...
- Our New Pick Is Coming Soon
- Our Green Energy Resources Play Jumps 11%!
- Our D1 Oils (Jatropha) Play Jumps 21%
- Yingli Green Energy: The Hottest Green Energy Stoc...
- Ugly Markets... Gay Budgies... And Green Investmen...
- This Thursday, Oct. 18, I Reveal... "The Dirtiest ...
- Please Give Me Your Ideas for Our New Global Green...
- Our Bunge Play Is Up 46.23%... Lock In Profits Usi...
- D1 Oils: The Only Pure Jatropha Stock in the World...
- Sell BG Options and Lock in 10% Gains in 8 Hours!
- Bunge Trips... As Expected
- New Recommendation: Bunge April 2008 Call Options
- LDK Solar Bounds 19%... Glad We Sold It!
- Correction: Professional Money Managers Are Even W...
- Random Walk Down Green Investment Street
- The Best of 4 Cleantech Indexes
- Green Investments and the "Tipping Point" of the M...
- Why We Use Trailing Stops
- Add D1 Oils to Our Portfolio at $4.15
- LDK Stops Out at $53.28... Hands Us 95.88% Gain
- Why Big Retailers Are Going Green
- New Recommendation: PZD
- Green Investment Highlight: Kookmin Bank
- September (24)
- August (11)
- July (7)
- June (1)
- April (2)
- March (18)
- February (8)
- January (17)