{"id":53209,"date":"2014-06-24T06:05:31","date_gmt":"2014-06-24T10:05:31","guid":{"rendered":"http:\/\/countingpips.com\/?p=53209"},"modified":"2014-06-24T06:45:31","modified_gmt":"2014-06-24T10:45:31","slug":"famous-billionaire-quietly-loads-up-on-rsg","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/famous-billionaire-quietly-loads-up-on-rsg\/","title":{"rendered":"Famous Billionaire Quietly Loads Up on RSG"},"content":{"rendered":"
June 24, 2014<\/div>
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By WallStreetDaily.com<\/span><\/a> \"Famous<\/p>\n

Whenever an insider buys $42-million worth of stock, it gets my attention.<\/p>\n

Well, such was the case last week when Cascade Investment purchased 1.4 million shares of Republic Services, Inc.<\/b> (RSG<\/a>) for between $36.58 and $36.80.<\/p>\n

Allow me to be perfectly honest\u2026<\/p>\n

Republic Services isn\u2019t a particularly exciting business.<\/p>\n

It\u2019s not sitting on a treasure trove of patents.<\/p>

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It\u2019s not on the verge of curing cancer.<\/p>\n

And it\u2019s definitely not unleashing a technology that\u2019ll change the world.<\/p>\n

So what\u2019s the storyline here?<\/p>\n

The storyline is the suitor. You see, Cascade Investment is actually a \u201cholding company\u201d upon which the richest man in the world likes to place his investment bets.<\/p>\n

As it turns out, buying 1.4 million shares of Republic Services wasn\u2019t this demigod\u2019s only move. He also said \u201cSayonara\u201d to another company, and dumped his entire stake in the firm.<\/p>\n

Time to Mirror This Billionaire\u2019s Move?<\/h3>\n

Bill Gates oversees an $81.7-billion fortune, which is almost $14 billion more than Mexico\u2019s Carlos Slim, the world\u2019s second-richest person.<\/p>\n

Very quietly, with little fanfare, Gates has diversified well beyond his Microsoft<\/b> (MSFT<\/a>) fortune. In fact, these days, Microsoft only comprises one-fifth of Gates\u2019 holdings.<\/p>\n

A large remainder of his wealth is tied up in an investment holding company called Cascade Investment, which is headquartered in Kirkland, Washington, a stone\u2019s throw from Microsoft\u2019s Bellevue headquarters.<\/p>\n

Last week, Gates bet big on the second-largest provider of non-hazardous solid waste management services in the United States, Republic Services. (The prior week, he liquidated his entire stake in British security firm, GS4 plc<\/b> (GFS.L<\/a>).)<\/p>\n

Republic Services operates in 39 states \u2013 through its 199 transfer stations, 190 active solid waste landfills, 64 recycling centers, and 69 landfill gas and renewable energy projects.<\/p>\n

Gates\u2019 $42-million purchase now brings his total holdings in Republic Services to over 91 million shares, making him far and away the company\u2019s largest shareholder.<\/p>\n

Other shareholders include fellow billionaires Mario Gabelli and D.E. Shaw.<\/p>\n

Why is Gates so bullish?<\/p>\n

Well, according to the Environmental Protection Agency, only 54% of total municipal solid waste ends up in landfills. So there\u2019s plenty of room for the industry to grow.<\/p>\n

Plus, Republic Services is an attractive backdoor play on the mushrooming recyclables market. As it stands, only $100 million of the company\u2019s $2 billion in sales are derived from this lucrative segment.<\/p>\n

When you consider the company\u2019s P\/E of 22, versus Waste Management\u2019s<\/b> (WM<\/a>) 131, it\u2019s difficult to make a bearish case.<\/p>\n

Every segment of Republic Services\u2019 business is showing growth, too.<\/p>\n

Most importantly, though, for the first quarter of 2014, earnings grew to $0.37 per diluted share \u2013\u00a0compared to $0.34 per diluted share for the same period in 2013.<\/p>\n

Share price always follows earnings (no exceptions).<\/p>\n

So let\u2019s follow Gates\u2019 lead, and buy on any dips.<\/p>\n

Onward and Upward,<\/p>\n

Robert Williams<\/p>\n

The post Famous Billionaire Quietly Loads Up on RSG<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/span><\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Whenever an insider buys $42-million worth of stock, it gets my attention. Well, such was the case last week when Cascade Investment purchased 1.4 million shares of Republic Services, Inc. (RSG) for between $36.58 and $36.80. Allow me to be perfectly honest\u2026 Republic Services isn\u2019t a particularly exciting business. It\u2019s not sitting on […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53209","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53209"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53209\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}