Gordon ReidWaste ConnectionsWCN.TOPAST TOP PICKSep 18, 2019

The really great companies that execute well continue to do this in a bull market. This company continues to execute well and is at an all time high.

Defensive. Their business model works in any business cycle, including a downturn. They have contracts with energy companies, which may suffer a bit, but garbage needs to be collected consistently. They run an efficient business and make accretive buys of companies. Has long owned this.

The question was on comparing WSP Global and Waste Connections. The companies are very different. WCN is in the waste management business and WSP Global is more on the engineering side. Waste management is an important field and a consistent business. WCN traditionally has had an expensive valuation. Both are good companies. Hold or wait to buy.

Loves it. There's room for growth in volumes as well as margin expansion.

Has done well. Classified as an industrial, but it doesn't have cyclicality. Pricing power and acquisitions drive the long-term growth. Operate in a lot of uncontested markets. Should continue growing at high single-digit pace. Zero product obsolescence. Sold, and high-graded his portfolio to WM instead. Both are good.

Great business that's grown by acquisition, which has been fruitful. Balance sheet in great shape, tons of free cashflow, inflation-protected contracts. Core position. Great management team. Expects more deals.

It is in the waste collection business - a very defensive place to be. A lot of contracts are tied to the CPI so revenues are bumped up and it can raise prices. Has owned for a long time and will buy more.

WCN vs. WM Fell last year, and now is picking up steam. It's more of a utility industrial than a cyclical. If you want cyclical, look at CAT or other industrial names. 28x forward earnings for 11% growth, so a bit rich for him. Fundamentally, a great business. WM has a better valuation than WCN and growth is about the same. To choose, he'd pick the larger one, which is WM.