NEW YORK (TheStreet) -- Progressive Waste Solutions (BIN) stock is down by 6% to $38.09 in mid-afternoon trading on Tuesday, after the Treasury Department proposed new tax regulations to prevent corporate tax inversions.
Waste Connections' (WCN) combination with Vaughan, Canada-based Progressive Waste is considered an inversion because it allows the waste management company to avoid U.S. taxes, the Wall Street Journal reports. The combined company's new headquarters will be in Toronto.
Progressive Waste and Waste Connections said the proposed regulations could negatively impact less than 3% of the combined company's adjusted free cash flow during the first year, or around $625 million.
The companies remain committed to the merger, they said in a statement.
Allergan (AGN), which could also be affected by the proposed regulations, is also declining today.
Waste Connections stock is down by 5.59% to $60.93 in mid-afternoon trading on Tuesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.
You can view the full analysis from the report here: BIN