The trash business in its efforts to cook their books trying to keep pace may find itself in some trouble. The efficiency per Garbage Truck unit numbers was growing exponentially at a time when consolidation has slowed as there is a decreasing number of worthy deals to make for a good value, Ah ha Warren Buffet's favorite remarks are here too.
Not because we read all his essays but because in this regard and subject matter he is correct. Wayne Hiezenga in his expansion efforts battled the mob based trash companies, mom and pop shops and the interference from regulators and government being used and manipulated by the said competition in an effort to keep the norm without innovating, lowering costs for consumers or even attempting to better themselves. And why would they when they could lobby powerful allies in government to further corrupt their position of collecting $15.95 per month times the population base of an area. Talk about a gravy deal, there has been no better business than the trash business. Regulators are always tilting the field and pummeling some entrepreneur to save another lazier competitor. That is what they do best, so caught up in the game itself they do not even realize they are being played for suckers. Adam Smith warned us about this problem in Capitalism and we have not as of yet fixed that little issue.
Well where are the strongest profit regional markets for refuse companies? Places like SF, Dallas, Houston, LA, Bay Area, Boston, Philly, Chicago, Atlanta, Miami, etc where during the recession had up to 28% unfilled office space; thus less people throwing away, shredding and recycling. The downtown office districts have picked up a bit, but certainly not at the level they were. This along with the high fuel prices could be the reason for the sagging prices, but do not call your investment lawyers or attorneys yet, the whole thing could rebound by fall. Think about it, think about all the trash in our society today.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
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