Long term Trends: Part 4: Cleanup and Waste Management

We expect these trends to continue:

1. Global Industrialization produces more waste by-products.
   
2. High Energy Prices encourages use of Nuclear Energy. Nuclear Waste is a by-product.
   
3. Waste is an alternative energy resource. There is Waste to Energy conversion and even Methane Gas Capture
   
4. Recycling plays an important role as commodity prices (materials) continues to remain expensive.

There are additional current factors:

1. There are companies in this group near their current 52 week high.
   
2. This is a good area to be in at this part of the cycle and beyond.
   
3. There is recent merger and acquisition activity. Allied Waste (AW) and Republic Services (RSG) are in the process.

Some of the Industrial and Environmental Cleanup Companies and Waste Management Companies

1. American Ecology (ECOL)
   
2. Clean Harbors (CLHB)
   
3. Energy Solutions (ES)
   
4. Waste Management (WMI)
   
5. Allied Waste (AW)
   
6. Republic Services (RSG)
   

Cow Power (Methane) Can Help Save Our Environment and Save our Future

Do not underestimate the Power of the Cow in terms of saving the environment and providing us with energy.

Cows (and a few other animals) can provide us with power and energy through their manure (the average dairy cow creates about 100 pounds of manure a day). Manure naturally releases methane gas into the atmosphere.

Companies, such as Utility Company PG&E (PCG), can take this manure and flush it into a tank or a tented lagoon, where the manure can decompose and the methane gas bubbles off, before being captured under the cover. The gas is then pumped from the digester, then purified and compressed into gas pipelines. After purification, the methane gas is the same as traditional natural gas, except that it's renewable and cleaner.

Cow Power Can Save the Environment Too

If we allowed the methane gas just to reach our atmosphere, this would be harmful to the environment. It is said that methane gas is 20 times more damaging to the environment than carbon dioxide.

PG&E

A lot of the information above comes from PG&E (PCG), the Utility Company. It has a forward PE of 12.73, a yield of around 3.60%, and a five year estimated growth rate of 7.73%. Incorporating the dividend yield in the PEG ratio, PG&E has a PE to Growth Ratio of around 1.12, which is a reasonable value.

They also provide a website:
www.wecandothis.com

and click on the Cow Power link.