"Garbage is good," Slager tells TheStreet. "People like the stability of our cash flow and the predictability of what we do with that cash flow." Slager says Republic Services will return $3 billion of cash to shareholders over the next three years in buybacks and dividends. The company is on the prowl for acquisitions too, Slager says, as a means to strengthen its number two position behind rival Waste Management (WM) .
It also helps to deliver good quarters. The company's first quarter adjusted earnings surged 35% from the prior year, fueled by strength in the large container business.
Although Republic Services shares trade at 20 times forward earnings estimates, a premium to the broader market, the defensive nature of the garbage business and strong track record of Slager makes the stock a worthy long-term investment.
Watch TheStreet's interview with Slager below.
Via: Alexander Nicoll
Biogen's (BIIB) surprisingly positive news on a potential Alzheimer treatment drug should peak everyone's interest in the biotech space. One way to gain diversified exposure to the notoriously volatile sector is through ETFs.
Biotech ETFs offer a variety of options to choose from depending on what an investor desires. Within the biotech sector, there are ETFs that hold just small and mid-cap companies or that involve an even more specific subsection of the industry. Average investors might want to look at the two largest biotech ETFs - the iShares Nasdaq Biotechnology ETF (IBB) and SPDR S&P Biotech ETF (XBI) - for more promising returns on their investments, George Gagliardi, a financial advisor for Coromandel Wealth Management, said in an email to TheStreet.
"XBI is equal weighted, rebalanced periodically, and allows the buyer to place similar wagers on over 100 different biotech companies," Gagliardi said. "IBB consists of nearly 200 cap-weighted biotech stocks, and the buyer gets larger positions in the larger and more well-known biotechs."
Gagliardi views investing in these two ETFs as a smart way to take a broad-based stake in the sector, seeing the potential gains being higher compared to the S&P 500
Since the beginning of the year, the IBB has under-perfomed against the Nasdaq Composite
Watch Jim Cramer discuss Biogen's positive news below.