I Like - Waste Management (WMI)

My pick for the day is Waste Management (NYSE: WMI). Yeah sure, it is near its 52 week high of $38.70. And yeah, the analyst estimates for 2007 are for less profit than in '04,'05, and '06. But let's face it--WMI is a well known brand in what I believe is an ever necessary business--waste & disposal services. They also have a great track record of delivering growth in terms of profits. The stock currently pays a dividend of 2.52% (this by the way is above their industry counterparts). So you not only have the potential for capital appreciation but you also can derive a small income on this play to either buy more WMI or diversify your holdings.

Now best of all, WMI just reported terrific results last week (up 19% compared to the same Quarter 1 year ago). That 19% shows us that these guys are turning things around and maybe, just maybe we'll find ourselves with a surprise for 2007 earnings.

How I'd play it: Buy a little now, and buy some more to get the Dollar Cost Averaging going in your favor on pull backs to the $31-$33 range.

Disclaimer: InvestBlogger is an individual investor and he does make mistakes. He encourages you to do your own research on any idea that you may get from his blog because it may be incorrect. He also encourages you to take ideas you get from this blog and discuss them with your financial adviser before making any investment as your financial position may be very different from InvestBlogger and thus calls for a different strategy.

Source: www.articletrader.com